United States gold scrap prices rose on Tuesday while gold futures prices at New York Mercantile Exchange has rebounded over 3% from July's multi-year low and hitting a fresh three-week high as the dollar and global equities slid on concerns over China's devaluation of its currency.
The major gold scrap commodities on the Scrap Register Price Index advanced on Wednesday. The 9ct hallmarked gold scrap prices rose to $406.236 an ounce and 14ct hallmarked gold scrap prices advanced to $633.728 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also gained at $812.472 ounce and $992.299 an ounce respectively.
According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices rose to $384.249 an ounce and 14ct non-hallmarked gold scrap prices up to $599.428 an ounce on Wednesday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded higher at $768.498 an ounce and $938.592 an ounce respectively.
The most active December gold contract on the COMEX division of the New York Mercantile Exchange last traded up by $15.40 to $1,123.10 an ounce on Wednesday. The contract got as high as $1,125.50, its most muscular level since July 20. The most-active gold futures have now risen five trading days in a row.
Gold futures prices at New York Mercantile Exchange rallied after investors sought its safe haven appeal as global equity markets continued to roil in the aftermath of China's surprise devaluation of its currency on Wednesday.
The move may be loaded with far-reaching implications, with the Federal Reserve may possibly be forced to delay interest rate hikes, not wanting to strengthen the dollar any further.
China on Tuesday devalued its currency - yuan, by the most in two decades to cushion its exports as the economy showed no signs of revival after the volatility in the stock market.
The move sparked fears of a currency war and hit global equities, prompting some investors to seek assets perceived as safer such as gold. The metal has now recovered more than 4 percent from a 5-1/2-year low of $1,077 hit during a late-July rout.
(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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