After hitting a new all-time low last month, the monthly Global Precious Metals MMI® bounced back up a bit to catch its breath, and registered a value of 76 in September, an increase of 2.7% from 74 in August.
So What’s At Play? Gold Prices and Fed Hikes?
Yesterday, Reuters reported that spot gold prices lost more ground, after drifting downward the past several days.
The precious metal was “hurt by a stronger dollar and as investors awaited a key US jobs report to gauge the timing of a Federal Reserve rate hike” – however, the global stock market [expletive]-show that has been rocking investor confidence lately may just be the only thing the Fed needs to go through with the hike.
(Besides, ADP‘s private-sector jobs report, released this past Wednesday, betrays severe underperformance – fewer than 200,000 jobs have been added in 6 of the last 8 months, as mentioned here.)
The gold price points from each of the 4 global markets we track (the US, China, Japan and India) all rose over the past month, and along with platinum increases in Japan, China and the US, were the main drivers of the wholesale increase in the Global Precious Metals MMI®. That’s likely due to the fact that equities markets have been doing so poorly – no, heinously – from China to the Dow.
So, on the face of it, gold was a factor in the global precious index’s rise…but let’s turn attention to the historical lows of palladium.
“No. 2” PGM More of a Concern
Palladium, platinum’s cheaper and less scarce cousin, hit another bottom. The US price of palladium bars tracked on the MetalMiner IndX℠ clocked in at $600 per ounce (log in or join as a MetalMiner member at the bottom of this article to get full pricing to all the precious metals we track) – the lowest since November 2012.
As my colleague Jeff Yoders wrote recently, although US auto markets appear robust at the moment, there is uncertainty in China and correspondingly lower auto sales there. Chinese auto sales fell by 7.10% in July 2015 compared to July 2014, the largest fall since February 2013.
Which won’t bode too well for catalytic converter sales, hence for PGM demand – and prices.
At $560.58 per kilogram, the price of Indian silver increased 7.3%. Indian gold bullion reached $406.66 per 10 grams after a 7.2% increase for the month. The price of Chinese gold bullion jumped 7.0% last month to $36.79 per gram. Chinese platinum bar prices rose 5.2% to $35.09 per gram. It was a strong month for US gold bullion. The metal posted a 3.6% increase, finishing at $1,134 per ounce. After rising 3.3%, Chinese silver finished the month at $518.59 per kilogram. The price of US platinum bar rose 2.5% to $1,007 per ounce after falling the previous month. After dropping the previous month, the price of Japanese gold bullion prices rose 1.0% to $36.40 per gram.
Japanese palladium bar prices fell 8.1% to $18.73 per gram. The price of Japanese silver closed the month at $4.49 per 10 grams after dropping 7.8%. At $600.00 per ounce, US palladium bar was down 1.5% for the month. Chinese palladium bar closed the month at $21.93 per gram after dropping 1.4%. US silver prices decreased by 1.1% this month, ending at $14.63 per ounce. The price of Japanese platinum bar drifted 0.1% lower to $32.32 per gram.
The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends over a 30-day period. 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.