Gold Futures See Slight Weekly Increase, Gold Premiums Rise
Gold futures fell for a third-straight session on Friday, as investors took their last opportunity to digest speeches from Federal Reserve members ahead of the period of silence before the September policy setting meeting.
Gold saw some upside earlier in the week that resulted in the metal finishing the week with a modest advance. The upside came after some weak economic data added more support for those believing that the Fed would hold off on an interest rate increase.
Then, on Friday, Boston Fed President Eric Rosengren, a voting member of the Fed’s interest-rate setting board repeated his previous to move rates higher sooner versus later. But, also on Friday, Dallas Fed President Rob Kaplan said that the Fed can afford to be patient in its actions, and that there is no rush in increasing rates. Kaplan’s commentary is not as powerful as Rosengren’s because Kaplan is a nonvoting member. Fed Gov. Daniel Tarullo said in an interview with CNBC Friday that he wants to see “more tangible evidence of inflation” before raising rates.
Now, commentary out of Fed members will be quite with the period of silence ahead of the Sept. 20-21 meeting. That starts next Tuesday. Still, investors are not expecting an interest rate hike this month, but are banking on one in December.
On Friday, gold futures for December delivery declined 0.5% to settle at $1,334.50 per ounce. Over the week gold futures gained by 0.6%.
Premiums on the major gold coins increased across the board this week, possibly due to the expectations that the Federal Reserve will delay its rate hike until later in the year. Premiums on American Buffalo coins increased to $61.56 from $60.21, premiums on American Gold Eagle coins increased to $60.23 from $58.90 and premiums on Canadian Maple Leaf coins increased to $46.84 from $45.81.