UNITED STATES August 04 2015 11:43 AM
NEW YORK (Scrap Register): United States gold scrap prices dropped on Monday in line with gold futures prices at New York Mercantile Exchange as investors cut positions in the precious metal amid a selloff in commodities.
The major gold scrap commodities on the Scrap Register Price Index traded down on Monday. The 9ct hallmarked gold scrap prices down to $397.579 an ounce and 14ct hallmarked gold scrap prices declined to $620.223 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also down at $795.158 ounce and $971.152 an ounce respectively.
According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices dropped to $376.06 an ounce and 14ct non-hallmarked gold scrap prices down to $586.654 an ounce on Monday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded down to $752.121 an ounce and $918.59 an ounce respectively.
The most active December gold contract on the COMEX division of the New York Mercantile Exchange last traded down by $5.80 at $1,089.30 an ounce on Tuesday. Gold futures prices at New York Mercantile Exchange settled as investors mull the prospect of a Federal Reserve rate hike later this year instead of September.
Gold trading below $1100 level since last month trading near a 5-1/2-year low, with selling pressure supported by expectations that the Federal Reserve is set to raise interest rates this year.
Investors looked past data that showed U.S. manufacturing activity falling short of estimates, instead awaiting the crucial nonfarm payrolls number due on Friday.
As the new week begins, the precious metal is finding itself back in the more familiar territory of around $1090. Despite the weaker US Employment Cost Index report and yesterday’s overall weaker-than-expected US macro numbers, gold traders remain wary of a potential rate hike in as early as September or December. They argue that the strong recovery in the US labour market, if sustained, may ultimately put upward pressure on wages and in turn on prices in the coming months.