Gold Slips as US Inflation Dips in August, Falls More after FOMC

Inflation and Gold Coins
Gold declined Wednesday, pressured by easing inflation and the latest FOMC news

Gold prices settled lower for the first time in three sessions, pinned by easing U.S. inflation and the Federal Open Market Committee’s latest statement.

Gold for December delivery shed 80 cents to close at $1,235.90 an ounce on the Comex division of the New York Mercantile Exchange. Gold moved lower still in after-hours trade, last near $1,223 an ounce, pressured by FOMC policy news.

"On balance, labor market conditions improved somewhat further; however, the unemployment rate is little changed and a range of labor market indicators suggests that there remains significant underutilization of labor resources," the Federal Open Market Committee said.

"Household spending appears to be rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee’s longer-run objective. Longer-term inflation expectations have remained stable."

Separately, the Labor Department’s monthly CPI report showed that U.S. consumer prices fell 0.2% in August after climbing 0.1% in July, and the annual US inflation rate advanced 1.7% compared to 2% previously. The monthly decline was the first since April 2013.

Silver extended its winning streak to four straight sessions. Silver for December delivery added a penny. Closing at $18.73 an ounce, the precious metal traded between $18.58 and $18.80. It gained a dime in the previous session after picking up a penny on Monday and on Friday.

In PGM futures on Wednesday:

  • October platinum declined $5.10, or 0.4%, to $1,362.20 an ounce, ranging from $1,357 to $1,371.

  • Palladium for December delivery lost $5.25, or 0.6%, to $839.05 an ounce, trading between $835.50 and $846.70.

London Fix Precious Metals

Earlier fixed London precious metals moved narrowly. In contrasting London bullion Fix prices and the LBMA Silver Price from Tuesday PM to Wednesday PM:

  • Gold rose $3.75, or 0.3%, to $1,236 an ounce,
  • Silver fell 12 cents, or 0.6%, to $18.63,
  • Platinum gained $2, or 0.1%, to $1,365 an ounce, and
  • Palladium added $5, or 0.6%, to $842 an ounce

US Mint Bullion Sales

United States Mint bullion sales were unchanged Wednesday as of 3:10 PM ET, but they did jump later in the day on Tuesday. Gains included 3,500 ounces in gold coins and 862,500 ounces in silver coins.

Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of bullion coins sold last week, this week so far, last month, this month so far, and the year to date.

American Eagle and Buffalo Bullion Sales (# of coins)
Wednesday Sales Last Week Current Week August Sales September Sales YTD Sales
$100 American Platinum Eagle Bullion Coins 0 100 200 700 400 14,000
$50 American Eagle Bullion Gold Coins 0 5,500 9,500 21,000 28,500 274,000
$25 American Eagle Bullion Gold Coins 0 1,000 0 0 5,000 32,000
$10 American Eagle Bullion Gold Coins 0 0 2,000 6,000 4,000 88,000
$5 American Eagle Bullion Gold Coins 0 0 0 25,000 10,000 420,000
$50 American Buffalo Bullion Gold Coins 0 1,000 3,500 8,000 7,500 132,500
$1 American Eagle Silver Bullion Coins 0 470,000 850,000 2,007,500 1,660,000 29,771,000
Great Smoky Mountains National Park 5 Oz Silver Bullion Coins 0 500 1,500 0 2,000 31,500
Shenandoah National Park 5 Oz Silver Bullion Coins 0 500 0 500 500 21,000
Arches National Park 5 Oz Silver Bullion Coins 0 0 500 1,200 500 21,700
Great Sand Dunes 5 Oz Silver Bullion Coins 0 2,500 500 7,500 3,000 10,500


To see how inflation has changed the buying power of the U.S. dollar over time, use this site’s Inflation Calculator.

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