Morning Gold & Silver Market Report – 6/5/2014
Ryan Schwimmer
6/5/2014 8:26:30 AM
ECB RATE GOES NEGATIVE
Gold and Silver prices jumped suddenly as European Central Bank (ECB) President Mario Draghi spoke at a press conference, saying the central bank is not finished with monetary easing, if needed. Earlier today, the ECB cut its deposit rate for banks to –0.1 percent. This negative rate means that banks will now be charged to hold funds at the ECB, with hopes that the money will find its way into the economy instead. U.S. stock futures rose with the U.S. dollar ahead of tomorrow’s key jobs report.
Gold was little-changed before Draghi’s comments, but shot up nearly one percent after the mention of monetary easing. The appeal of non-interest-bearing assets like Gold increases with low interest rates, though most analysts were expecting Gold to take a cue from the dollar-euro relationship. A higher-valued dollar makes Gold less expensive.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,257.10, Up $10.80.
- Silver, $19.10, Up $0.25.
- Platinum, $1,444.10, Up $9.20.
- Palladium, $839.00, Up $1.90.
APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
