Prices to buy gold in London’s wholesale market headed for a 1% weekly drop Friday, slipping to $1166 per ounce as the US Dollar extended its gains following Donald Trump’s US presidential victory, denting currencies worldwide including China’s Yuan ahead of next week’s Federal Reserve decision on interest rates.
US stock markets rose further from yesterday’s new all-time highs, while commodity prices also gained and bond prices slipped – nudging longer-term interest rates higher.
Silver prices held above $17 per ounce, adding 1.7% from last Friday for US Dollar buyers.
The Fed is almost certain to raise its key Dollar interest rate ceiling to 0.75% next Wednesday according to futures market bets.
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Despite the falling Yuan – now down near 8.5-year lows to the Dollar – Chinese premiums to buy gold, over and above London prices, held at $29 per ounce at Friday afternoon’s Shanghai Gold Fix.
That was just shy of last month’s 3-year highs, as traders continue to report a cut in the number of import licenses issued by the authorities, apparently seeking to stem outflows of capital to buy gold and help halt the Yuan currency’s extended decline.
This post was published at FinancialSense on 12/09/2016.