Overnight trading in Asia saw gold prices spike to a three and a half month high, mainly due to drifting expectations of when the United States would raise interest rates. Gold prices were even able to briefly break a key resistance barrier.
The price of gold rose above $1,174 at one point, breaking through August’s high watermark of $1,170 per troy ounce. Many alalysts view this as a critical test for gold prices, as traders often choose to bail out of rallies at such technical benchmarks. These price benchmarks, therefore, tend to act as a ceiling on upwards price swings. Breaking clear of such thresholds usually indicates a stronger price surge to come.
Future Interest Rate Hikes in US Driving Price Surge
As a purely financial investment, gold is a non-yielding asset and benefits from low interest rates. Most of the recent demand investment demand for gold is wrapped around the notion that the Fed is unlikely to raise interest rates in the near-term. Worse than expected retail sales figures from the United States have caused the dollar to fall to a 3 1/2 week low. This sign of decreasing consumer demand, coupled with a Fed Beige Book report showing tightening labor markets in the US, is pushing the the gains in the precious metals markets.
Gold prices continued their weeks-long slide, with many traders awaiting the decision of the US Federal Reserve regarding a potential interest rate hike. The biggest question for traders is “does the Fed view the current labor and inflation dynamic as having met their conditions for a hike in rate?” said Erik Gebhard, a co-founder of Altavest Worldwide Trading.
The two-day policy meeting of the Fed concludes this Thursday, with most traders reluctant to make significant bets on gold before learning the result. Consequentially, trading volumes have been low this week. If interest rates are lifted, even slightly, the appeal for gold as an investment vehicle will decline, as gold does not bear interest.
Of course, for investors who are looking to purchase gold as a long-term investment, the news could be welcome, allowing them to purchase physical gold at a cheaper price.
CBMint is proud to be the industry leader in offering cheaper silver and gold bullion prices than any of our competitors. We always strive to be the best online bullion dealer, and to that end we are rewarding our customers by offering strong discounts when the buy bullion in bulk, specifically gold and silver rounds and coins. Here are the types of bulk discounts CBMint is offering:
CBmint is offering both mint tubes and monster boxes of gold coins, both of which have a large discount over buying gold coins individually. Purchasing American Gold Eagles and Canadian Gold Maple Leafs is cheaper when done in bulk. Though the price of gold is, naturally, far higher than that of silver, volume investors who purchase substantial amounts of gold over the year may instead benefit from buying tubes or monster boxes of gold coins, thereby earning the volume discount that applies.
Large discounts apply when buying silver coins in bulk, as well. Sovereign mints generally package silver coins in hard plastic mint tubes of 20 or 25 units — these we sell direct to our customers, at a discount. Also available are Monster Boxes of silver coins, usually containing 500 units. Commonly purchased are Monster Boxes of Silver Eagles and Silver Maple Leafs. Customers who buy Monster Boxes of silver coins from CBMint receive an even steeper discount.
Not to be left behind, private mints also usually ship their new silver rounds in mint tubes and monster boxes. Again, we apply steep discounts to bulk purchases of silver rounds, allowing investors to save a significant sum of money when buying silver rounds online in bulk. Both silver round mint tubes and monster boxes have bulk discounted pricing.
In the future, to maintain the CBMint reputation of being the best place to buy silver and gold online, we plan to negotiate further with various mints, in order to obtain more bulk pricing options. We look forward to adding even more products into our discounted categories, allowing you, our valued customers, to buy gold and silver as cheaply as possible!