ع
WAM’s update on the precious metals market came as gold held near $4,290 per ounce with minimal movement in early trading on September 24. The stability in gold contrasted with declines in silver and platinum, though palladium showed some resilience in futures trading. Bloomberg data indicated that bullion had fallen the day before on expectations of tighter monetary policy from the Federal Reserve.
S&P Global Market Intelligence reported that its flash Composite Purchasing Managers Index climbed to 58.4 in September, up from 56 in August, signaling robust expansion in the U.S. economy. Chief Business Economist Chris Williamson noted that U.S. business continues to boom with output growing at the fastest rate for over five years. This strength has traders reassessing the path for interest rates higher.
According to Reuters, silver dropped 2.5 percent to $65.39 per ounce, platinum fell 2.1 percent to $1,794.28 and palladium decreased 1.7 percent to $1,285.65. The moves came as the dollar strengthened to its highest level in two months. Higher rates tend to reduce the appeal of precious metals that do not yield interest.
Developments in the Middle East added to the market dynamics, with oil prices rising after the Iranian president’s comments at the United Nations. Bloomberg reported that the Iranian leader said his country would not allow freedom of navigation through the Strait of Hormuz while sanctions and a U.S. blockade remain. This has fanned concerns over inflation and potential rate hikes.
Ole Hansen, director of commodity strategy at Saxo Bank, told Reuters that gold continues to trade within its narrow range between $4,300 and $4,400. He added that Fed comments and their impact on U.S. interest rates, bond yields, the dollar and oil price movements are setting the main direction for short-term traders. The analysis underscores the sensitivity of the sector to macroeconomic indicators.
Futures on the Comex exchange reflected these trends with gold contracts for December delivery showing limited change. Kitco charts placed the bid for spot gold at $4,291.90 with a small uptick in late trading. Investors will look to upcoming speeches by Federal Reserve officials for further guidance on policy.
