The cold war between Saudi Arabia and Iran boosts US Gold Scrap, Gold Futures prices

UNITED STATES January 05 2016 6:25 PM

NEW YORK (Scrap Register): United States gold scrap prices advanced on Monday, while gold futures prices at New York Mercantile Exchange settled their highest level in more than a week as tensions in the Middle East and a plunge in China’s stock market unsettled investors around the globe, fueling haven demand for the precious metal.

The major gold scrap commodities on the Scrap Register Price Index traded up on Monday. The 9ct hallmarked gold scrap prices rose to $393.668 an ounce and 14ct hallmarked gold scrap prices advanced to $614.123 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also gained at $787.337 ounce and $961.601 an ounce respectively.

According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices rose to $372.362 an ounce and 14ct non-hallmarked gold scrap prices up to $580.884 an ounce on Monday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded higher at $744.723 an ounce and $909.555 an ounce respectively.

The most active February gold contract on the COMEX division of the New York Mercantile Exchange advanced by $15 an ounce to $1,075.20 an ounce on Monday.

Gold futures prices at New York Mercantile Exchange marked their highest settlement since Decelerated 24 as investors reacted to a move by Saudi Arabia to cut commercial ties with Iran and weaker than expected manufacturing data in China. 

Gold rose after Saudi Arabia cut diplomatic ties with Iran after Iranian protesters stormed its embassy in Tehran, following Riyadh's execution of a prominent Shi'ite cleric on Saturday.