Strong Dollar weighs US Gold Scrap, Gold Futures prices

UNITED STATES September 23 2015 12:16 PM

NEW YORK (Scrap Register): United States gold scrap prices declined on Tuesday in line with gold futures prices at New York Mercantile Exchange due to the stronger dollar and concerns that the Federal Reserve may raise interest rates in coming months.

The major gold scrap commodities on the Scrap Register Price Index traded down on Tuesday. The 9ct hallmarked gold scrap prices down to $408.455 an ounce and 14ct hallmarked gold scrap prices declined to $637.19 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also down at $816.91 ounce and $997.719 an ounce respectively.

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According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices dropped to $386.348 an ounce and 14ct non-hallmarked gold scrap prices down to $602.703 an ounce on Friday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded down to $772.696 an ounce and $943.719 an ounce respectively.

The most active December gold contract on the COMEX division of the New York Mercantile Exchange settled down by $8.10 at $1,124.50 an ounce on Tuesday.

Gold futures prices at New York Mercantile Exchange settled down as dollar trended higher and in anticipation of a rate hike by the Federal Reserve some time this year.

Global equity markets tumbled after commodity prices plummeted on a strengthening dollar, with crude oil prices leading the plunge.

A weaker dollar tends to encourage buying in dollar-priced commodities as it makes them cheaper to holders of other currencies. Weakness in the Chinese economy also translated to waning demand for the precious metal.