Gold Price Declines Despite Premium Injection
The price of gold has resumed its decline after a brief pause last week. According to The Gold Update, despite a +60 point premium injection into the COMEX futures contract, gold's net loss was -17 points (-0.4%) for the week. The December contract settled at 4099 on Friday, lower than the August settle of 4056.
The precious metal equities have fared better, with Pan American Silver (PAAS) leading the pack at +58% year-to-date, followed by the Global X Silver Miners ETF (SIL) at +54%, and Newmont (NEM) at +50%. The VanEck Vectors Gold Miners ETF (GDX) is up 43%, while Franco-Nevada (FNV) has gained 35%.
The Federal Reserve's Open Market Committee maintained its funds rate within the targeted range of 3.50%-to-3.75%. However, three FOMC members - Hammack, Kashkari, and Logan - voted to raise rates, indicating potential dissent in the future.