Gold Hovers Near $1300 An Ounce
Los Angeles CA, (Tangible Investments) - by James O’Dell - The Gold price edged lower on Monday with the yellow metal trading at $1,299.20 an ounce and Silver trading at $19.58 an ounce, while the dollar steadies and the sideways action in the metals continues. The market remains focused on the annual gathering of central bankers in Jackson Hole on Thursday, and Fed Chief Janet Yellen's speech on Friday.
Gold and Silver bullion prices closed lower last week, with Gold easing $8.20 or 0.62 percent to end the week at $1,304.55 an ounce, amid increasing safe-haven demand, as hedge funds raised their bets on Gold for the first time in three weeks, according to the Commodity Futures Trading Commission (CFTC). The price of Silver dipped $0.29 or 1.46 percent to finish the week at $19.59 an ounce, while the Gold/Silver ratio rose to 66.59.
Last week began with geopolitical turmoil nearly boiling over in Ukraine and the Middle East. In Iraq, President Fuad Masum named Haider Al Abadi as the country’s next prime minister, in response, the previous Prime Minister, Maliki, threatened legal action but eventually stepped aside. The U.S. continues air strikes against Islamic State forces across Iraq while President Obama has also found it necessary to arm Kurdish fighters to help strengthen their resolve against the determined Islamic State militants.
Tensions continue to build between the West and Russia over the annexation of the Crimean peninsula five months ago. A convoy of 280 vehicles left Moscow for Ukraine on Tuesday, ostensibly to carry humanitarian aid to Eastern Ukraine, after warnings from the West against using a ruse like delivering aid as a pretext for an invasion. Ukraine is now accusing Moscow of allowing military equipment to cross the border, including three missile systems, one of which may have brought down a Ukrainian Mig-29 fighter jet, on Sunday.
The Chicago Mercantile Exchange (CME) rolled out its new Silver fixing engine on Friday. The electronic, auction-based process will replace the predecessor London Silver Fix, a global spot benchmark for 117 years that was effectively killed off in April, when Deutsche Bank halted its participation in the fixing process. Deutsche Bank's departure from the process left just two banks on the fixing panel, Bank of Nova Scotia and HSBC Holding, and according to those familiar with the matter, the process was rendered unviable.
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