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Dollar Recovery Caps Gold Prices

Daily Gold & Silver Market Report – 03/29/2017

Although the impact was offset by a fresh decline in eurozone yields and overall firm demand for Gold, Tim Clayton with Economic Calendar said Gold price increases were curbed due to the U.S. dollar finally rebounding and an improved tone surrounding risk appetite. Clayton said, “The U.S. consumer confidence data was stronger than expected with a sharp increase to 125.6 for March from a revised 116.1 the previous month which was the highest level for over 16 years.” Furthermore, Federal Reserve Vice-Chair Stanley Fischer mentioned two interest rate hike increases are very likely in 2017, causing positive impacts on yield potentials. In addition, U.S. bond yields moved to highs around 2.42 percent and the combination pressured Gold spot prices. Although there was mixed evidence on physical demand, Clayton said, “The U.S. data releases are unlikely to have a major impact with markets continuing to focus on trends in the dollar and risk appetite.

Silver Looks Poised For a Massive Rally

Although Gold prices are experiencing an 8.5 percent gain as a result of the so-called “Trump-mentum,” ETF Daily News reporter Sean Brodrick says Silver prices are “sprinting with a 13.5 percent gain.” If this gain continues, Brodrick believes this new Precious Metals bull market could result in a 65 percent gain for Silver for 2017, because “more coiling up [of the chart] means the eventual explosion higher will only be bigger.” So what’s fueling this move? ETF Daily News says it is due to multiple reasons such as the rarity of Silver, a decrease in Silver mining from the 2015 peak and a surge in industrial demand for not only Silver, but all Precious Metals. Silver is used for many different things, from wiring in cell phones to chemical reagents to the paste used in solar cells. Brodrick says he hopes we experience a pullback in Silver prices to allow a buying opportunity for investors. Then, hopefully, Silver bypasses Gold prices and skyrockets.

Investors are Bailing Out Of U.S. Stock ETFs

The recent debate surrounding President Donald Trump’s first big legislation, the Affordable Healthcare Act, has caused an increase in market volatility and subsequently raised investors’ concerns about other promises from Trump. A report from SeekingAlpha says “Investors are worried that if the Republican cannot deliver on such an important issue, then the future of tax reforms, the primary reason for the stock market rally since the election, is also uncertain.” Instead, investors are shifting their portfolios toward consumer defensive sectors like utilities and safe-havens assets such as Precious Metals. 

At 12:25 p.m. (ET), the APMEX Precious Metals spot prices were:

  • Gold, $1,254.10 Down $4.30
  • Silver, $18.30 Down $0.03
  • Platinum, $954.70 Down $5.00
  • Palladium, $792.60 Down $2.00

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

Spot Silver Breaks $18

Daily Gold & Silver Market Report – 03/28/2017

Peter Krauth with Money Morning said Monday was the first time since March 1 that spot Silver prices reached above $18 per ounce. Why the rally? Krauth says it is not only due to stocks, oil and the U.S. dollar taking hits, but ever since the Federal Reserve interest rate hike March 15, Precious Metals “prices have exploded”, with Silver prices rising 6.9 percent. So far this year, Krauth says Silver prices are up 12.8 percent and more gains are to come, saying, “[Silver is] clearly building momentum as it currently sits just above its 50-day moving average.” Many investors believe this bull market is expected to progress for the next few years.

  • Silver prices have gained 4 percent over the past week while higher short-term rates, courtesy of the Federal Reserve, were unable to dampen the buying enthusiasm.
  • The Gold/Silver price ratio has risen since early March and has consolidated near 71 (MoneyMorning.com).

Gold Prices Steady as Investors Focus on Trump

U.S. political and economic uncertainty surrounding President Donald Trump, along with expectations of a lower dollar, caused Gold prices to hold one-month highs. Following President Trump's failure to push through his healthcare reform last week, more and more investors are buying due to rising concerns about Trump’s ability to actually follow through with his agendas. A product of this concern caused the dollar to drop to a four-and-a-half-month low against a basket of currencies Monday. Julius Baer Analyst Carsten Menke said, “Changing perceptions of the outlook for U.S. interest rates will create volatility in Gold.” Reuters Pratima Desai said, “The U.S. Federal Reserve raised interest rates this month, boosting the dollar, which could strengthen further on expectations of further rises after comments from its policymakers. However, some analysts expect the Fed to keep rates on hold for some time, leaving the dollar to drift lower,” causing Precious Metal prices to continue their uptrend.

Dow at Risk of Longest Losing Streak Since 1978

CNN Money and FactSet data says the last time the Dow Jones industrial average fell nine days in a row Jimmy Carter was in the White House. Reporter Matt Egan says, “While the market hasn't retreated very far during the recent slump, it still represents a dramatic reversal from the early euphoria on Wall Street following President Trump's victory.” Many investors are starting to worry that President Trump’s failure to repeal and replace Obamacare will hinder the rest of his political and economic agenda. Wall Street is also keeping a close watch on the president's next moves; Egan said big banks such as Morgan Stanley and Goldman Sachs “have given back some of their post-election gains in recent days.” Yardeni Research President Ed Yardeni said, “For now, the so-called 'Trump bump' in financial markets may be turning into a 'Trump slump’.”

  • The Dow's eight-day losing streak is its longest slump since 2011. The index is still up 11 percent since the November election.
  • The Dow is only down 1.6 percent during the recent pullback, compared with a much more dramatic plunge of 7 percent during the August 2011 stumble (CNNMoney.com).

At 11:38 a.m. (ET), the APMEX Precious Metals spot prices were:

  • Gold, $1,259.10 Up $0.50
  • Silver, $18.31 Up $0.13
  • Platinum, $963.10 Down $7.90
  • Palladium, $798.10 Up $2.20

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

Silver Price Rally Continue as Dollar Selloff Intensifies

Daily Gold & Silver Market Report – 03/27/2017

Precious Metals have caught another tailwind from the falling U.S. dollar, causing spot Silver prices to rise more than one percent earlier today. Economic Calendar market analysts Sam Bourgi said, “The rally was triggered by another sharp drop in the U.S. dollar combined with risk aversion in the equity markets following a failed healthcare bill in Washington on Friday.This most recent drop puts the dollar on track for its weakest settlement since before the Presidential Election of Donald Trump, causing Silver and other Precious Metal prices to continue their rise.

  • The U.S. dollar index, a broad performance measure of the buck, fell 0.5 percent to 99.09.
  • Dow Jones futures were off more than 100 points. Futures on the S&P 500 Index also fell 0.8 percent (EconomicCalendar.com).

Spot Gold Prices Continue to Rise

Spot Gold prices climbed due to a decrease in the U.S. dollar along with U.S. Treasury bond yields after the AHCA healthcare reform bill was “shelved” on Friday, said DailyFX reporter Ilya Spivak. He continued, “AHCA’s failure poured cold water on rate hike bets conditioned on Trump’s inflationary economic platform of tax cuts, deregulation and infrastructure spending, as expected.” Oil prices are also continuing to struggle, Spivak said, “to find lasting direction cues having stalled above the $47/bbl figure two weeks ago. Downside pressure may be mounting however as swing supply continues to swell while OPEC members and like-minded producers outside the cartel struggle to find common ground.” Baker Hughes reported that the number of active US extraction rigs rose to the highest level since mid-September 2015 last week. So what does this mean for Gold prices? Investors are on the lookout as they watch Precious Metal prices continue to rise.

Oil Prices Drop Due to Worries over Global Supply Resurface

Renewed concerns about global oil supply after a meeting of OPEC producers failed to impress investors early Monday morning, causing oil prices to drop. Five representatives of countries such as Kuwait, Algeria, Venezuela and non-OPEC nations Russia and Oman that signed up to the Organization of the Petroleum Exporting Countries output agreement met in Kuwait on Sunday to review the current levels of compliance. Market reporter Barbara Kollmeyer with MarketWatch said that, “data suggests not all non-OPEC members are adhering to quotas.” The meeting provided little concrete news causing prices to shift lower today. Kollmeyer said, “Those OPEC official urged members to cut oil production in line with last year’s agreement, and said the compliance committee will meet again in late April to recommend to the cartel whether cuts need to be extended another six months.” Ipek Ozkardeskaya, Senior Market analyst at London Capital Group said, “We remind that the selloff in the oil markets was triggered by record high levels of U.S. oil inventories, which are not meant to fade under the Trump administration, which is longing for less energy dependency for the U.S.”

At 12:19 p.m. (ET), the APMEX Precious Metals spot prices were:

  • Gold, $1,256.60 Up $5.30
  • Silver, $18.14 Up $0.32
  • Platinum, $971.20 Up $1.30
  • Palladium, $796.60 Down $18.30

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

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