Gold and Silver Add to Gains After Fed Rate Hike

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Gold and silver gained on Wednesday while platinum and palladium declined. Increases for the pair of metals were their first in three sessions. Both advanced further in after-hours trade when the Fed announced another hike in interest rates.

After ending at a more than 29.5-month low, gold for December delivery rose $4.60, or 0.3%, to settle at $1,675.70 an ounce on the Comex division of the New York Mercantile Exchange.

Gold futures traded between $1,661.30 and $1,696.90. They lost 0.4% on Tuesday, for their lowest close since April 3, 2020, and they shed 0.3% on Monday.

On Wednesday following a two-day monetary policy meeting, the Fed’s FOMC raised the benchmark federal-funds rate by 0.75% — the third such increase in a row — to a range between 3.0% and 3.25%.

In after-hours trade, gold moved near $1,685 an ounce.

"The yellow metal is seeing a ‘relief rally’ after the FOMC meeting statement with no major surprises, an as-expected interest rate increase and Fed Chair Powell’s press conference comments were not deemed more hawkish than the marketplace expected … The metals bulls were further encouraged late this afternoon as the U.S. dollar index backed well down from its daily high," Jim Wyckoff, a senior analyst at Kitco Inc, said in a daily research note.

Silver for December delivery added 29.7 cents, or 1.6%, to end at $19.48 an ounce. Silver futures ranged from $19.23 to $19.95. They fell 0.9% on Tuesday, for their weakest close since Sept. 9, and they dipped 0.1% on Monday. The precious metal was last above $19.77 an ounce in later, electronic trading.

In PGM futures on Wednesday:

  • October platinum slipped $6.80, or 0.7%, to $916 an ounce, trading between $908 and $943.50.

  • Palladium for December delivery declined $47, or 2.2%, to $2,123.50 an ounce, ranging from $2,112 to $2,209.

US Mint Bullion Sales in 2022

Published United States Mint bullion sales were unchanged on Wednesday. Below is a sales breakdown of U.S. Mint bullion products with columns listing the number of coins sold during varying periods.

US Mint Bullion Sales (# of coins)
Wednesday This Week May June July August September 2022 Sales
$50 American Eagle 1 Oz Gold Coin 0 27,500 164,500 31,000 59,500 47,500 47,500 780,500
$25 American Eagle 1/2 Oz Gold Coin 0 0 7,000 6,000 5,000 2,000 0 73,000
$10 American Eagle 1/4 Oz Gold Coin 0 0 8,000 18,000 2,000 4,000 4,000 138,000
$5 American Eagle 1/10 Oz Gold Coin 0 10,000 50,000 135,000 20,000 20,000 15,000 560,000
$50 American Buffalo 1 Oz Gold Coin 0 27,000 56,000 21,500 39,500 22,500 38,500 360,000
$1 American Eagle 1 Oz Silver Coin 0 408,000 1,350,000 925,000 850,000 850,000 833,000 13,239,500
$100 American Eagle 1 Oz Platinum Coin 0 0 0 23,500 15,500 1,000 0 80,000

 

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Antonio

Yes! About time. My saving account will earn .75% more interest.

Kaiser Wilhelm

Antonio,
Since you’ve already shared the good news with us here it’s up to me to deliver the not so good news, which is that the average US credit card interest rate is now at 18.1%.

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Rich

This week’s dump of 408,000 2022 American Eagle 1 oz Silver Bullion coins brings the yearly total sales (mintage) to 13,239,500 coins, which supposedly is not meeting public demand for American Silver Eagles. Further more, according to Coin World (9/21/2022), the premiums paid on silver American Eagle bullion coins are multiples of those being charged on silver bullion issues from other nations. Recent premiums being paid for the American Eagle 1-ounce .999 fine silver bullion dollar coins are currently at around $14.90, up sharply from the prior premiums at $4.80 above the spot price of silver (for example, with silver… Read more »

Last edited 5 days ago by Rich
Kaiser Wilhelm

Good Sir Rich, Let’s read between the lines here a bit. The Mint’s Authorized Purchasers are putting forth the excuse of a shortage of the Bullion American Silver Eagle supply as being the reason for their current multiplying of the premium they charge dealers, and the dealers are then using the excuse of the higher wholesale prices they are being charged as the reason for the major increase in their retail prices to the tune of about $10.00 per ounce. Therefore, when this is all said and done, anyone wishing to protect their financial assets from the effects of ongoing… Read more »

East Coast Guru

what a silver eagle mess out there. I have noticed that some dealers are offering higher prices to buy back random eagles. I wonder if a shortage is developing for eagles only. Definitely a demand for them out there vs other offerings from Austria, Canada, Australia etc. Curious to say the least!! ASE price vs paper price definitely separating.
Enjoy the ride.

Kaiser Wilhelm

East Coast Guru,

Those are some very interesting and definitely intriguing points there. Perhaps much as the US Dollar remains the financial world’s go-to currency so also has the Bullion American Silver Eagle become the international investment coin of choice. With unusually large numbers of said coins in rather fierce demand these days, it’s likely safe to say this is yet another sign of the hand of the extremely wealthy at work, much as is evidenced by the otherwise curious fact that luxury items now comprise the sole retail sector going against the prevailing tide and experiencing substantial sales growth.

Last edited 4 days ago by Kaiser Wilhelm