Gold and silver fell
After breaking the losing streak and posting moderate gains on September 14, gold and silver fell again. On September 15, the COMEX gold futures contract for December delivery fell 0.09% to $1,320.25 per ounce. The COMEX silver contract for December delivery fell 0.07% to $19.05 per ounce.
Gold weakened amid a string of US economic data
Gold and silver didn’t show strength on September 15 amid a string of US economic data. On September 15, the US economic data included the producer price index, retail sales, and industrial production. According to the Census Bureau, the retail sales for August fell 0.3%. This is the first fall in US retail sales in five months. According to the Fed, the US industrial production for August fell 0.4%. Given the weaker-than-expected US economic data, the chances of an interest rate hike in September fell more.
Even though gold gained some strength from comments made by Lael Brainard, the Fed governor who warned against the interest rate hike in the near term, it resumed its slide and fell in six out of the past seven trading days. According to Brainard, the stronger trend in US consumer spending and inflation must support the US economy before increasing the interest rate. The chances of an interest rate hike in September, November, and December moved from 15%, 22%, and 48.1% on Wednesday to 12%, 21.1%, and 51.2% on Thursday.
On September 15, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) gained 2.8%, 1.6%, 0.41%, and 0.36%, respectively. The SPDR Gold Trust ETF (GLD) fell 0.63%.
In the next part, we’ll discuss how companies in the energy, metals, and mining sector performed on September 15.