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Metals market today: Gold flat at $1,643, silver drops to 18.8

By Indrabati Lahiri

08:56, 26 September 2022

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In this article:
Aluminum
Aluminium Spot
2504.38 USD
115.13 +4.850%
AALl
Anglo American
34.220 USD
1.245 +3.780%
ANTO
Antofagasta
14.235 USD
0.575 +4.240%
Copper
Copper
3.7870 USD
0.1385 +3.800%
GLEN
Glencore
5.6660 USD
0.144 +2.620%

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Bank reserve gold bars arranged in rows
Gold traded flat while silver dropped following the dollar reaching new heights and the BoE mulling an emergency rate hike – Photo: Getty

Precious metals were mixed on Monday morning, kicking off the week on a subdued note, with gold mostly flat, silver down and platinum and palladium up, following the US dollar (DXY) touching fresh 20-year highs.

Investors are also concerned about the Bank of England mulling emergency interest rate hikes following the British pound touching all-time lows against the dollar, following a number of tax cuts and spending measures in the recently announced mini-budget.

Gold traded flat at $1,643 per troy ounce, with a weekly decline of about 1.9%, following the dollar (DXY) touching new highs.

Gold traded flat at about $1,643 per troy ounce

Analyst views on precious metals

According to Piero Cingari, analyst at Capital.com, “It is a market phase in which the dollar defies gravity, with the DXY index surpassing 113 and reaching its highest level since May 2002.This clearly puts pressure on the entire metals sector, with gold falling below $1,650 per ounce and silver below $19/oz.

There is a lot of worry in Europe, with the UK in the grip of a currency and bond crisis and Italy electing far-right Prime Minister Giorgia Meloni. Gold may see some buyers on dips in this type of economic and political upheaval, though the main headwind (the Fed) remains.”

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Metals price performance

Silver dropped 0.9% to $18.8 per troy ounce, following gold’s footsteps, as the precious metal was also subdued on concerns of the Bank of England announcing an emergency interest rate hike.

Platinum edged up 0.5% to $858 per troy ounce, following North American demand for platinum expected to reach new highs in the coming days. Palladium inched up 0.7% to $2,082 per troy ounce.

Copper inched down 1.1% to $3.3 per pound, still trading around two-month lows, following aggressive interest rate hikes by major central banks across the world, leading to increased fears of a global recession. Iron ore inched up from CNY 706 per tonne in the previous session to CNY 712 per tonne in the current one. Aluminium rose 0.3% to $2,172 per tonne.

The US dollar (DXY) scaled to fresh 20-year highs, rising from 113.2 in the previous session to 114.5 in the current one.

The US 10-year Treasury yields dropped from 3.8% in the previous session to 3.7% in the current session.

Silver

22.20 Price
+4.280% 1D Chg, %
Long position overnight fee -0.0059%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.020

Natural Gas

6.96 Price
-3.980% 1D Chg, %
Long position overnight fee 0.0481%
Short position overnight fee -0.0743%
Overnight fee time 22:00 (UTC)
Spread 0.005

Gold

1,769.86 Price
+1.140% 1D Chg, %
Long position overnight fee -0.0060%
Short position overnight fee 0.0024%
Overnight fee time 22:00 (UTC)
Spread 0.18

Oil - Brent

86.95 Price
+2.330% 1D Chg, %
Long position overnight fee -0.0038%
Short position overnight fee -0.0098%
Overnight fee time 22:00 (UTC)
Spread 0.04

Top mining ETFs and mining stocks

The GDXJ lost about 6.3% in the last trading session

The Van Eck Gold Miners ETF (GDX) dropped 5.5% to $22.4 in the previous trading session, with a weekly decline of about 8%.

The Van Eck Junior Gold Miners ETF (GDXJ) plunged 6.3% to $27.0 in the last trading session, with a weekly fall of about 9.7%.

The S&P Global Metals and Mining ETF (XME) plummeted 5.3% to $41.5, in the previous trading session, with a weekly loss of about 11.7%.

Glencore (GLEN) dropped 0.3% to GBP 4.5, with a weekly fall of about 8%.

Rio Tinto (RIOgb) inched lower 5.3% to AUD 88.1, with a weekly fall of about 6%.

Anglo American (AALI) dropped 0.8% to GBP 26.4, with a weekly decline of about 8%.

Antofagasta (ANTO) inched lower 0.3% to GBP 10.5, with a weekly fall of 8.7%.

Today’s market moving events

Investors are looking forward to Silvana Tenreyro, External Member of the Bank of England’s Monetary Policy Committee’s speech, due for later in the day, which may hopefully shed more light on whether the BoE plans to go ahead with its emergency interest rate hikes.

 

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