Prices of Gold Rise But Still Constrained by U.S. Dollar

APMEX

9/5/2018 11:00:38 AM

Daily Gold & Silver Market Report – 09/05/2018

The price of Gold lifted slightly in early trading Wednesday, getting strength from technical buying by those concerned about rising inflation in emerging economies. The modest gains were constrained by a rising U.S. dollar, gaining momentum again from global worries over international trade wars. As reported by CNBC, spot prices and U.S. Gold futures both rose Wednesday morning, after weak trading in the previous session. The article points out that inflation concerns typically give Gold a boost due to its long-term standing as a safe-haven investment when commodities prices rise, however concerns about inflation in Turkey and a recession in South Africa have limited enthusiasm for Precious Metals in recent weeks.

New tariffs from the United States on $200 billion in goods from China could potentially take effect late this week, after a period of public comment concludes Thursday. Think Markets UK Ltd Chief Market Analyst Naeem Aslam said, “The growing frustration towards trade tariffs and what will be the end result of all of this is supporting the Gold prices. Secondly, there are some serious concerns about recession, given that South Africa has slipped into it. If emerging markets start to perform really bad, everyone will catch the cold. This should support the Gold price.”

Bitcoin Devotees Set Hopes on November

In recent weeks, the price of Bitcoin has been highly volatile, but many cryptocurrency watchers think that could soon change. Later this month, the U.S. Security and Exchange Commission (SEC) will decide whether to approve a Bitcoin exchange-traded fund (ETF). The SEC has previously stayed away from Bitcoin ETFs due to concerns about significant price swings and risk of price manipulation in the market. However, the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), has announced plans to operate its own Bitcoin ETF beginning November 5.

As observed by Forbes, ICE made public in July that it was developing a cryptocurrency platform with Starbucks, Microsoft and Boston Consulting Group. The platform will be called Bakkt and will include an ETF , which will allow for a scalable ecosystem for regulated warehousing and markets. In a blog post Bakkt CEO Kelly Loeffler said, “Our new daily bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset. This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement.”

At 11:46 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,199.00 Up $2.90
• Silver, $14.27 Up $0.05
• Platinum, $787.00  Up $5.80
• Palladium, $977.10 Down $9.40

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