US Scrap Gold prices declines on Monday; COMEX Gold rises sharply

UNITED STATES May 05 2015 10:34 AM

NEW YORK (Scrap Register): United States gold scrap prices declined on Monday, while gold futures prices at New York Mercantile Exchange rose mainly due to weak Chinese factory data and earlier dollar weakness.

As per Scrap Register Price Index, the prices of 9ct Gold Scrap hallmarked declined to $427.752 an ounce and 14ct Gold Scrap hallmarked traded down at $667.293 an ounce on Monday.

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The prices of 9ct Gold Scrap non-hallmarked dropped to $404.6 an ounce on Monday and 14ct Gold Scrap non-hallmarked traded down at $631.176 an ounce.

However, the most active June gold contract on the COMEX division of the New York Mercantile Exchange settled up $12.60 at $1,187.10 an ounce on Monday.

Gold futures price advanced on Monday mainly due to weak Chinese factory data and earlier dollar weakness, though caution over the timing of a U.S. interest rate hike kept prices hemmed within a narrow range.

The Federal Reserve indicated that it saw a recent slowdown in the U.S. economy as transitory and did not rule out an interest rate rise this year. That would lift the opportunity cost of holding gold, while boosting the dollar, in which it is priced.

The U.S. Census Bureau said in a monthly report that factory orders for the month of April soared 2.1%, above estimates of a 2.0% gain. Bolstered by a surge in aircraft, motor vehicle and energy equipment orders, the reading posted its first gain in eight months.

Expectations that the Fed will hike rates for the first time in nearly a decade are holding gold on course for a third straight yearly loss.

(This article is researched and compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)