US Gold Scrap prices advance; Gold Futures drop ahead of FOMC meet

UNITED STATES September 16 2015 10:44 AM     

NEW YORK (Scrap Register): United  States gold scrap prices advanced on Tuesday, while gold futures prices at New  York Mercantile Exchange settled down as the dollar strengthened against other  currencies ahead of Federal Reserve's decision on US interest rates.

The  major gold scrap commodities on the Scrap Register Price Index advanced on  Tuesday. The 9ct hallmarked gold scrap prices rose to $402.289 an ounce and 14ct  hallmarked gold scrap prices advanced to $627.571 an ounce. The 18ct hallmarked  gold scrap and 22ct hallmarked gold scrap prices also gained at $804.579 ounce  and $982.659 an ounce respectively.

According to Scrap Register Price  Index, the 9ct non-hallmarked gold scrap prices rose to $380.516 an ounce and  14ct non-hallmarked gold scrap prices up to $593.605 an ounce on Tuesday. The  18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are  also traded higher at $761.032 an ounce and $929.474 an ounce respectively.  

The most active December gold contract on the COMEX division of the New  York Mercantile Exchange settled down by $4.70 at $1,103 an ounce on Tuesday.  

Gold futures prices at New York Mercantile Exchange as investors weighed  a slew of economic data ahead of the outcome of the Fed's two-day FOMC meet on  Wednesday. The Fed will announce Thursday afternoon whether it will raise  interest rates for the first time in about ten years.

Rates have been at  effectively zero since the financial market meltdown of 2008. A rate hike is  likely to drive gold prices lower, as the precious metal will lose much of its  appeal as a hedge against inflation.