|Strong Gold and Silver Coin Sales Continue At US Mint |
Los Angeles CA, (Tangible Investments) - by James O'Dell - The Gold price is down modestly in early trading on Monday, easing 0.15 percent to $1,136.50 an ounce, after surging $22.80 or 2.04 percent on Friday to finish the week at $1,138.20 an ounce, following a disappointing non-farm payrolls report that couldhave the Fed reassessing once again the lift-off date of its rate hike. The price of Silver is up 1.24 percent to $15.47 an ounce on Monday, after rallying $0.78or 5.38 percent on Friday, its sharpest climb since Dec. 2014, to end the week at $15.28 an ounce, while the Gold/Silver ratio fell to 74.49.
The week began with a report by the U.S. Mint that sales of Gold and Silver coins continues at the strong pace begun in July. Mint sales of Gold bullion coins have already topped 110,000 ounces in September. “U.S. retail coins have been one of the bright spots in demand since the price correction in July. July andAugust recorded 469 percent and 268 percent (year-on-year) growth, while September is already 79 percent higher than last year…,” said the bank.
"Fed policy has been instrumental in influencing Gold prices for many months," said HSBC in a note. Gold eased for a third day on expectations that the Fed will hike U.S. interest rates before year end. Gold has come under pressure from the uncertainty surrounding exactly when the Fed will raise U.S. interestrates for the first time in nearly a decade.
The turmoil that shook China’s equity market earlier this year has prompted massive Gold buying by the world’s top consumer of the precious metal. Investors have withdrawn a record amount of Gold from the Shanghai Gold Exchange (SGE) this year. SGE withdrawals are a measure of Chinese investment and retaildemand and it has reached 1,891.9 tons so far this year, an increase of 560.9 tons over last year and 281 tons more than in 2013.
China's central bank is also bolstering its Gold holdings, raising its foreign exchange reserves a full one percent as China's Gold hoard grew to 54.45 million ounces in August from 53.93 million ounces in July, according to data released by the central bank. China recently overtook Russia to become the country withthe world's fifth largest Gold stockpile of about 1,694 tons.
The U.S. Mint has also been setting quotas for its flagship American Eagle Silver coins since July because it can't keep pace with demand even with the plant operating three shifts daily while the staff works overtime.
The Bureau of Labor Statistics reported on Friday that only 142,000 jobs were created in September, far below economists’ expectations of around 200,000 jobs. August and July numbers were also negatively revised, with August falling from 173,000 initially reported to just 136,000; and July employment datarevised lower to 223,000 from an initial report of 245,000.
The jobs numbers are so bad that Paul Ashworth, of Capital Economics believes the rate hike is off the table until early 2016. "While it’s always important not to over-react to one single data release, we’ll make an exception in this case. The chances of a rate hike by the Fed this year just went way down," saidAshworth.
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