Gold, Silver Trade Lower After Fed Statement

by on December 14, 2016 · 5 comments

Gold Bars Close-up

Gold futures dropped toward $1,144 an ounce in later electronic trading

Precious metals futures posted gains in normal trading Wednesday, then gave them and more back in after-hours trade when the Fed released its latest policy statement.

Gold for February delivery added $4.70, or 0.4%, to settle at $1,163.70 an ounce on the Comex division of the New York Mercantile Exchange. In electronic trading after the Fed news, however, gold prices fell toward $1,144 — their lowest point since early February.

"Gold prices softened on expectations for further Fed rate increases, a stronger U.S. dollar and rising U.S. interest rates," MarketWatch quoted Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

After its two-day meeting ended Wednesday, the Fed raised interest rates by a quarter point and signaled quicker increases next year.

Gold futures slipped 0.6% on Tuesday, ending at their lowest level since Feb. 5, after edging up 0.3% on Monday.

Meanwhile, silver for March delivery tacked on 24.4 cents, or 1.4%, to settle at $17.221 an ounce. Silver futures traded between $16.94 and $17.29. The precious metal was last near $16.88 an ounce in after-hours trading. Silver fell 1.2% on Tuesday after rising 1.3% on Monday.

In PGM futures on Wednesday:

  • January platinum rose $4.10, or 0.4%, to $940.80 an ounce, ranging from $928.30 to $948.50.

  • Palladium for March delivery rose $1.95, or 0.3%, to $732.55 an ounce, trading between $726.20 and $734.20.

London Precious Metals Prices

In comparing earlier fixed London bullion prices from Tuesday PM to Wednesday PM:

  • Gold added $3.70, or 0.3%, to $1,162.25 an ounce.
  • Silver added a dime, or 0.6%, to $17.11 an ounce.

LBMA platinum and palladium prices are available on the LBMA’s website with a delay of midnight.

US Mint Bullion Coin Sales in 2016

United States Mint bullion sales were unchanged Wednesday. The agency’s most popular 2016-dated bullion coins have already sold out. New 2017-dated issues will go on sale Jan. 9.

Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of coins sold during varying periods. Products with an asterisk (*) are no longer available.

US Mint Bullion Sales (# of coins)
Wednesday Sales Last Week This Week Nov Sales Dec Sales 2016 Sales
$100 American Eagle 1 Oz Platinum Coins* 20,000
$50 American Eagle 1 Oz Gold Coins* 23,000 129,000 23,000 817,500
$25 American Eagle 1/2 Oz Gold Coins 0 2,000 1,000 7,000 3,000 74,000
$10 American Eagle 1/4 Oz Gold Coins* 2,000 18,000 2,000 152,000
$5 American Eagle 1/10 Oz Gold Coins* 40,000 105,000 40,000 925,000
$50 American Buffalo 1 Oz Gold Coins 0 5,500 1,500 29,500 7,000 214,000
$1 American Eagle 1 Oz Silver Coins* 240,000 3,061,000 240,000 37,701,500
2016 Shawnee 5 Oz Silver Coins* 105,000
2016 Cumberland Gap 5 Oz Silver Coins* 75,000
2016 Harpers Ferry 5 Oz Silver Coins 0 100 0 1,500 100 38,100
2016 Theodore Roosevelt 5 Oz Silver Coins* 800 6,600 800 40,000
2016 Fort Moultrie 5 Oz Silver Coins 0 0 0 27,800 0 27,800


{ 5 comments… read them below or add one }

Whistler December 14, 2016 at 4:47 pm

I am a gold bug…BUT I have something saved & the Fed has been awful with rate$ they need to go up, IF you are lucky to have sav some $ you shoulkd get mnore than .o1%, heck as a kid in the ‘6o’s I got 4-5%, $ doubled in 9 years….now it doubles when Mr. Spock visits Earth! AU/AG may fall @ 1st but that lovely INFLATION will return–> You know there is none ! And hey that’s only a cold sore….

Seth Riesling December 14, 2016 at 4:54 pm

Jp –

You guessed right. Gold is now under $1150 in afterhours trading at $1142.

The Mint hasn’t sold a single silver or gold bullion version coin in two days now! They have 2 different gold bullion coins & 2 different silver bullion coins available right now, but no buyers!


Joe C. December 14, 2016 at 5:00 pm

May the gold & silver prices keep falling and the TV hawkers eat their over-priced inventory.

Jp December 14, 2016 at 6:33 pm

Yeah, gentlemen,
Gold is trading after hours at 1139 right now. I think there will be a short spike then drop again to 1100-11teens. Maybe bottom out there? I like gold, but it’s too pricey for me to buy to make any real money on. I think a person could make a killing on it though day trading. Or lose your A$$!
Whistler, your right about % rates. I see some CU’s (mostly) starting to come up on 1 yr rates, but 4-5% would look very good right now. That would really mess with the stock market. I think the market may see a sizable hit within 6 month’s too? It’s a guess. 300-400 points?
Seth, your right, no buyers for the bullion… it’s a bit risky for those guys even, I think? Someone always is running a deal on 1 oz bars though if anyone is interested. Bullion Exchange is running 9.99 over spot on RMC 1oz bars. There may be some better deals out there, just keep looking.

Mouse December 14, 2016 at 7:52 pm

Gold is definitely a better buy right now over silver. Sometimes in this game you need to take risk…not for me right now lol i am a fan of capitalism but the prices of bullion over spot are ridiculous right now.

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