United States scrap gold prices are expected to trade lower this week in line with spot and future gold prices as market expectations shift to June rate hike.
The prices for hallmarked scrap gold and non-hallmarked scrap gold reported a decline as on Scrap Register Price Index on Friday.
As per Scrap Register Price Index, the prices of 9ct Gold Scrap non-hallmarked dropped to $ 433.261 an ounce and 14ct Gold Scrap non-hallmarked traded down at $675.887 an ounce on Friday. The prices of 9ct Gold Scrap hallmarked declined to $458.052 an ounce and 14ct Gold Scrap hallmarked traded down at $714.561 an ounce.
On Friday, the Bureau of Labor Statistics said 257,000 jobs were created in January, beating expectations of 236,000 jobs. The data also reported strong revisions for December and November and said that wages increased 0.5% last month.
The news caused COMEX April gold futures to blast below initial support at the 200-day moving average around $1,255 an ounce, eventually hitting a session low of $1,228.20 an ounce.
The most active April gold contract on the COMEX division of the New York Mercantile Exchange settled the week at $1,234.60 an ounce, down $48.40 or 3.77% on the week.
Analysts have explained that gold sold off on the news because it raises expectations that the Federal Reserve will now be in a position to raise rates as early as June.
(This article is researched and compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
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