US Scrap Gold, Gold Futures prices drop on Fed rate expectations

UNITED STATES May 19 2016 7:10 PM 

NEW YORK (Scrap Register): United States scrap gold prices declined on Wednesday, while gold futures prices at New York Mercantile Exchange settled lower, then fell further after minutes from the U.S. Federal Reserve’s April meeting showed that officials from the central bank were ready to raise interest rates in June if economic data warrant. 

The major gold scrap commodities on the Scrap Register Price Index traded down on Wednesday. The 9ct hallmarked gold scrap prices fell to $463.017 an ounce and 14ct hallmarked gold scrap prices decreased to $722.307 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also down at $926.035 ounce and $1130.997 an ounce respectively. 

According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices decreased to $437.957 an ounce and 14ct non-hallmarked gold scrap prices down to $683.213 an ounce on Wednesday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded lower at $875.914 an ounce and $1063.9 an ounce respectively. 

The most active June gold contract on the COMEX division of the New York Mercantile Exchange settled lower by $2.50 to $1,274.40 an ounce on Wednesday. In electronic trading after the FOMC minutes, prices fell to lows under $1,265 an ounce.

Gold came under pressure after Fed officials felt the U.S. economy could be ready for another interest rate increase in June, according to the minutes from the central bank's April policy meeting released on Wednesday. The suggestion that a rate increase in June is firmly on the table suggests the Fed is closer to tightening monetary policy again than Wall Street had expected.