Global Precious Metals MMI®: Gold Rises, But Fed Action Could Trigger a Tailspin

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Gold Prices Going Up

Gold futures posted the longest slump in 5 weeks on concern that the Federal Reserve is moving closer to raising US interest rates, crimping demand for the precious metal as an alternative investment.

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In the third quarter, gold fell 8.4% as the US economy gained. The Fed begins a two-day meeting tomorrow and policy makers will debate the pace of raising borrowing costs after holding its benchmark rate close to zero% since 2008.

The week’s biggest mover on the weekly Global Precious Metals MMI® was the price of Japanese palladium bar, which saw a 4.0% decline to JPY 3,105 ($26.28) per gram. This comes on the heels of a 5.5% increase the week before. At CNY 180.00 ($29.13) per gram, the price of Chinese palladium bar finished the week 1.7% higher. The price of US palladium bar rose 1.0% to $806.00 per ounce after falling 0.5% during the previous week.

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Following a 5.0% increase in the week prior, the price of Japanese platinum bar fell 2.7% last week to JPY 4,653 ($39.38) per gram. The price of US platinum bar fell 0.8% to $1,217 per ounce after rising 0.2% the week before. Closing out the third week of rising prices, the price of Chinese platinum bar increased by 0.4%, landing at CNY 260.00 ($42.07) per gram.

The price of Chinese gold bullion rose 2.7% over the past week to CNY 242.90 ($39.31) per gram. This was the fifth week in a row of increasing prices. The price of Indian gold bullion rose 1.8% over the past week to INR 27,215 ($435.26) per 10 grams. This was the third week in a row of increasing prices. The price of US gold bullion rose 1.8% to $1,214 per ounce after falling 0.2% during the previous week. Following a 5.9% increase in the week prior, the price of Japanese gold bullion fell 0.3% last week to JPY 4,645 ($39.31) per gram.

One of the big movers this week was US silver, which shot up 3.7% to reach $16.89 per ounce. The price of Chinese silver rose 3.3% this week, closing out the fifth consecutive week of elevating prices at CNY 3,600 ($582.56) per kilogram. The price of Indian silver rose 2.4% this week, closing out the third week at INR 38,911 ($622.32) per kilogram. The price of Japanese silver rose 1.3% over the past week to JPY 638.00 ($5.40) per 10 grams. This was the third week in a row of increasing prices.

The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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