[Au Price]US Gold Scrap prices advance as Gold Futures settle above $1,100 a ton mark

UNITED STATES August 11 2015 10:50 AM

NEW YORK (Scrap Register): United States gold scrap prices advanced on Monday, while gold futures prices at New York Mercantile Exchange advanced 1% to above $1,100 an ounce on Monday, its biggest increase in more than seven weeks, as the US dollar turned lower and comments from Federal Reserve officials raised uncertainty about a September rate hike.

The major gold scrap commodities on the Scrap Register Price Index traded higher on Monday. The 9ct hallmarked gold scrap prices rose to $398.233 an ounce and 14ct hallmarked gold scrap prices advanced to $621.244 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also gained at $796.467 ounce and $972.752 an ounce respectively.

As per Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices rose to $376.68 an ounce and 14ct non-hallmarked gold scrap prices up to $587.62 an ounce on Monday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded higher at $753.359 an ounce and $920.103 an ounce respectively.

The most active December gold contract on the COMEX division of the New York Mercantile Exchange last traded up by $10.50 at $1,104.60 an ounce on Monday.

Gold futures prices at New York Mercantile Exchange settled higher at $1,104.10 an ounce after some dovish comments from a top Federal Reserve official that suggests a delay in rate hike.

Fed Vice Chair Stanley Fischer said this morning that the central bank should not hike rates until inflation is back to normal. Consumer prices have been rising at an anemic pace despite interest rates near zero for the past few years.

Meanwhile, China is under increased pressure to step up stimulus for the economy after data over the weekend showed a sharp decline in foreign and domestic demand as well as a slump in producer prices, raising the risks over its aim to achieve the 7 percent growth target.

Meanwhile Holdings at SPDR Gold Shares, slipped to their lowest since September 2008 edged down to 667.59 tons on Monday from its previous close of 667.93 tons.

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