The Weekly Dig
Mick Carew, PhD
Haywood Mining Team
Gold Tests $1,300 per Ounce Level Amid Continued Fed Uncertainty
The price of gold continued to fall this week amid uncertainty surrounding the Federal Reserve’s decision later this month as investors continued to cover short positions in the yellow metal. The central bank will meet on Tuesday and Wednesday, and some market watchers are still considering the possibility the Fed will raise interest rates at the meeting. This comes despite U.S. retail sales figures this week for the month of August, which showed a decline of 0.3%. It was the first decline in retail sales since March. Meanwhile, initial jobless claims were up slightly and mortgage applications rose last week,PPI for final demand was flat in August. On Friday, the yellow metal closed at $13,11 per ounce, testing the $1,300 per ounce level which many gold bugs believe represents a floor in the price of gold. Gold equities were also down this week; the S&P/TSX Global Gold Index fell 5% to finish at 234 on Friday while the S&P/TSX Venture Index was down 1.5% to finish at 799. Silver (↓1.5%) and platinum (↓4%) fell along with gold, finishing at $18.76 and $1,015 per ounce, while palladium rose slightly during the week to finish at $671 per ounce. The base metals, copper jumped 3% on Wednesday, finishing at $2.16 per pound. Lead was also up 5% while nickel (↓4%) and zinc (↓1.5%) were down for the week. The price of WTI crude fell to finish at $43.21 (↓5%).
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This report is neither a solicitation for the purchase of securities nor an offer of securities. Our ratings are intended only for clients of Haywood Securities Inc., and those of its wholly owned subsidiary, Haywood Securities (USA) Inc., and such clients are cautioned to consult the respective firm prior to purchasing or selling any security recommended or views contained in this report.
Quelle: stockcharts.com
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