Gold On Track for Weekly Gain

APMEX

9/21/2018 12:48:25 PM

Daily Gold & Silver Market Report – 09/21/2018

• Gold on track for weekly gain in early Friday trading.
• Dollar index stays strong as tariffs more modest than expected.
• Palladium enjoys 7-week winning streak.
• Gold acquisition from central banks on the rise.

The price of Gold lost a bit of strength in early trading Friday but is still on track for an overall gain this week. This narrow slip came amid continued worries regarding the trade war between the United States and China. Both countries announced new tariffs against the other this week, in tit-for-tat fashion. According to a report by CNBC, the Chinese government said this week it still has hopes the U.S. will take a more sincere approach to trade and take steps to change current behavior. The standing of the U.S. dollar as the primary reserve currency has given it a great deal of strength in recent weeks, as investors assess that the United States has less to lose than others in the dispute.

The fact that both sides set tariffs at lower rates than expected helped hold off any additional losses for Gold spot prices. Fawad Razaqzada, an analyst for FOREX, said, “The fact that concerns eased a bit this week weighed on the dollar a bit but that has reversed and so that is why Gold is easing.” The dollar index rose again this week, but investors are anticipating a Federal Reserve meeting next week, where interest rates are expected to be pushed higher once again by the U.S. central bank. Silver prices rose in morning trading Friday, as well.

Palladium Sees Gains for 7 Consecutive Weeks

At the end of trading Thursday, Palladium futures have once again risen, reaching a seven-session consecutive gain. Prices settled at their highest levels since February, pushed by strong expectations of automotive industry demand. October futures for Platinum also saw 1.5 percent gains Thursday. Michael Jones, CEO of Platinum Group Metals Ltd., said in a report published by MarketWatch, “In America, ‘Make the Truck Great Again’ has taken over and the trends are towards big SUVs and trucks.” Jones also remarked that tighter emissions standards would take effect in China in two years, which will “increase the amount of Palladium needed in every car.”

Gold Investments from Central Banks Spike

A recent update from the World Gold Council reported the popularity of Gold as a reserve asset among the world’s central banks has dramatically increased this year. Released Thursday, the report stated aggregate demand for Gold from central banks rose 8 percent during the first half of 2018, noting 193.3 tons of Gold were added to global reserves. As detailed by Axcess News, this amount is compared to 178.6 tons allocated during the same period in 2017. This number reflects the most robust growth in Gold investment from central banks in the previous three years. The countries acquiring the most were Russia, Kazakhstan and Turkey, who together accounted for 86 percent of the purchases. The central bank of Mongolia, along with Egypt, made a Gold purchase for the first time in 40 years.

At 1:35 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,199.30 Down $9.80
• Silver, $14.40 Up $0.05
• Platinum, $832.10 Down $5.10
• Palladium, $1,055.00 Down $0.20

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