August 31, 2016 -- Markets reversed themselves in yesterday’s trading and gave back most of Monday’s gains. Stocks, crude oil, and precious metals all finished lower and the U.S. dollar strengthened. Some positive data on consumer confidence paired with hawkish comments from Fed Vice Chair Stanley Fischer raised the odds of a rate hike in the coming months, and markets didn’t like that possibility.

A report from the World Gold Council also weighed on metal prices. The report showed central banks around the world, which have been aggressively adding to gold reserves, reduced their gold purchases by 40% in the second quarter relative to the same period last year. The decline is mostly attributed to lower commodity prices and slowing growth. Emerging market nations are generating less cash with which to buy bullion.

The phenomenon of central banks adding to gold reserves is recent. Nations spent decades selling off gold reserves until the 2008 financial crisis and ultra loose U.S. monetary and fiscal policy made ADDING gold and reducing dependence on dollars look more prudent.

Live prices at MoneyMetals.com show gold currently trading at $1,312.55 per ounce on the global market, and silver is coming in at $18.71.