Gold Scrap prices bounce back to $1,000 an ounce mark; Gold Futures hit 4-week high

UNITED STATES August 20 2015 11:33 AM

NEW YORK (Scrap Register): United States gold scrap prices gained on Wednesday in line with gold futures prices at New York Mercantile Exchange as declines in global stock markets provided a boost to the metal’s safe-haven appeal.

The major gold scrap commodities on the Scrap Register Price Index traded higher on Wednesday. The 9ct hallmarked gold scrap prices rose to $409.637 an ounce and 14ct hallmarked gold scrap prices advanced to $639.034 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also gained at $819.274 ounce and $1000.607 an ounce respectively. The 22ct hallmarked gold scrap prices got as high as $1000.607, its most muscular level since July 17 this year.

As per Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices rose to $387.466 an ounce and 14ct non-hallmarked gold scrap prices up to $604.447 an ounce on Wednesday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded higher at $774.932 an ounce and $946.45 an ounce respectively.

The most active December gold contract on the COMEX division of the New York Mercantile Exchange last traded up by $12.60 at $1,129.80 an ounce on Wednesday. Gold scored a four-week high Wednesday on safe-haven demand amid market place worries about China’s stock market and financial system.

Gold futures prices at New York Mercantile Exchange logged their biggest single-session rally in a week on Wednesday. The Wednesday afternoon early release (one news service broke the embargo) of the FOMC minutes from last month’s meeting saw traders and investors looking for further clues on the precise timing of the expected upcoming U.S. interest rate hike.

The Fed said it will continue to monitor upcoming economic data in order to determine the timing of a U.S. interest rate hike. The minutes said the Fed is also concerned about recent developments with China’s economy. While the monetary policy hawks and doves debated the FOMC minutes, the U.S. dollar saw a solid sell-off in the wake of the minutes, which would favor the doves. Gold prices got just a slight boost in the aftermath of the FOMC minutes.