Gold Futures Post First Quarterly Loss of One Year - Gold Coin Interest Muted
Gold futures closed Friday’s session with a 0.7% loss, pushing the metal to a 0.3% loss for the quarter, its first quarterly loss of the year.
While September was a busy month in terms of market developments for gold, the commodity’s price action was limited. At the September Federal Reserve policy setting meeting the Fed moved, as expected, and maintained interest rates as is for the time being. Right now, economists are anticipating a rate hike in December, once the federal election has concluded.
Gold posted a barely positive finish this month, adding 0.4%, gold coins staged a similar, lackluster performance. American Gold Eagle coins finished this Friday, the last trading day of the month, with a $59.31 premium over spot, up just slightly from the $58.90 premium observed at the beginning of the month. Among other gold coins, American Buffalo premiums closed at $60.73 compared to the $60.21 at the beginning of September and Canadian Maple coin premiums increased to $46.21 from $45.81.
Overall September was a lackluster month for the physical gold market. Every year, once summer comes to a close optimism about the fall and winter gold market picks up, but this did not happen in September. Hopes are still high that demand will pick up with India’s Diwali festival coming up in a month, but the Indian gold market has been a disappointment so far this year. There is more optimism about US jewelry and physical gold demand in the fourth-quarter. The American economy remains strong and consumer confidence is high, two positive factors for physical gold demand.