Gold Market
Deeper looks at the forces setting the gold price.
Gold dropped nearly $100 on Friday after a surprise surge in US nonfarm payrolls boosted rate-hike expectations. The metal is set for a second consecutive weekly loss, and traders now look to next week's inflation data.
De Nederlandsche Bank has shipped 86 tonnes of gold from New York and Ottawa to London, citing geopolitical unrest. France has already emptied its gold from the New York Fed. The moves point to a deeper concern about liquidity in a crisis.
Central banks bought a net 23 tonnes of gold in July, the World Gold Council reported. Year-to-date purchases of 130 tonnes lag last year, with higher prices prompting caution.
CPM Group's Jeffrey Christian examines the macroeconomic forces affecting gold, from the Fed's Jackson Hole meeting and India's jewellery market to bond market volatility and his outlook to year-end.
Sibanye-Stillwater has approved its Mt Lyell copper-gold project in Tasmania and the Burnstone gold project in South Africa, advancing two long-life developments as stronger metals prices boost its finances.
Gold remains close to a two-week low near $4,460 as Fed Chair Warsh’s hawkish tone and oil-fuelled inflation fears push September rate hike probability above 65%.
Gold is consolidating near $4400 on Monday, a day after suffering its largest single-day loss in more than two months following hawkish remarks from Fed Chair Warsh.
Gold snapped a five-week winning streak, falling 3.4% as Fed comments on inflation and possible tightening spooked markets. Despite the drop, gold remains up 30% year-over-year.
Gold, silver, platinum and palladium each have distinct supply, demand and market characteristics that affect their behaviour as assets.