US Scrap Gold, Gold Futures down on fears of Fed rate increase

UNITED STATES May 24 2016 6:49 PM

NEW YORK (Scrap Register): United States scrap gold prices declined on Monday, while gold futures prices at New York Mercantile Exchange settled lower for a fourth session in a row, as the expectation that the Fed could raise interest rates as soon as next month drove precious-metals prices to their lowest levels since late April.

The major gold scrap commodities on the Scrap Register Price Index traded down on Monday. The 9ct hallmarked gold scrap prices fell to $452.014 an ounce and 14ct hallmarked gold scrap prices decreased to $705.142 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also down at $904.028 ounce and $1104.119 an ounce respectively.

According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices decreased to $427.549 an ounce and 14ct non-hallmarked gold scrap prices down to $666.977 an ounce on Monday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded lower at $855.099 an ounce and $1044.36 an ounce respectively.

The most active June gold contract on the COMEX division of the New York Mercantile Exchange settled lower by $1.40 to $1,251.50 an ounce on Monday, with prices logging their lowest settlement since April 27. Last week, gold futures lost about 1.6%. 

Gold fell amid hawkish sentiments from a pair of Fed policymakers on the likelihood for a gradual increase in short-term interest rates over the next year, providing further downward pressure on the precious metal.