[Au Price] Gold Futures recovers from five-year low; US Scrap Gold prices up

UNITED STATES July 28 2015 11:14 AM

NEW YORK (Scrap Register): United States gold scrap prices advanced in line with gold futures prices at New York Mercantile Exchange on Monday, nudging upward from a five-year low, after a steep drop in Chinese equities spurred some investors to buy the precious metal as a hedge.

The major gold scrap commodities on the Scrap Register Price Index traded higher on Monday. The 9ct hallmarked gold scrap prices rose to $399.616 an ounce and 14ct hallmarked gold scrap prices advanced to $623.401 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also gained at $799.231 ounce and $976.128 an ounce respectively.

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As per Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices rose to $377.987 an ounce and 14ct non-hallmarked gold scrap prices up to $589.66 an ounce on Monday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded higher at $755.974 an ounce and $923.296 an ounce respectively. 

The most active August gold contract on the COMEX division of the New York Mercantile Exchange last traded up by $9.90 an ounce at $1,095.40 an ounce on Monday.

Gold futures prices at New York Mercantile Exchange settled up on Monday as the dollar trended lower and on safe haven demand as worldwide equity markets continued to decline, led by a sharp sell-off on the Shanghai market. 

Gold prices climbed after the U.S. dollar slipped against most major currencies, with investors playing it cautious ahead of the Federal Reserve policy meet outcome later this week. 

The precious metal was impacted by some weak performance of the Chinese stock market, creating deep concerns among investors. The Shanghai stock exchange declined a near 8.5 percent for a second straight session of losses, making it the worst daily percentage decline since February 27, 2007. 

In economic news, a Commerce Department report on Monday showed durable goods orders in the U.S. rebounded strongly in June, after reporting a sharp drop in new orders for manufactured durable goods in the previous month.

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