Closing Gold & Silver Market Report – 8/18/2014

Brandi Brundidge

8/18/2014 4:20:00 PM

UKRAINE TENSION EASES; FED COULD SET DATE TO RAISE RATES

Several factors are responsible for pushing Gold below $1,300 an ounce today, such as a stronger U.S. dollar and European and U.S. shares bouncing due to tensions easing in Ukraine. Gold has jumped nearly eight percent this year as investors have opted for the safe haven asset with concerns growing in Ukraine and the Middle East. For the first time in three weeks, hedge funds and money managers increased their bullish wagers on Gold futures and options, according to data released Friday by the Commodity Futures Trading Commission.

Predictions have been made for Friday’s Federal Reserve policy meeting in Jackson Hole, WY, where Janet Yellen will make her first appearance at the annual conference as Fed chair. Economists believe Yellen will steer clear of monetary policy and focus primarily on the labor market, much like former Fed chairman Ben Bernanke in March 2012.  "We look for new clues on how the Fed plans to gain greater control of the Fed funds rate as it tightens policy, while the system is still swimming in reserves as a result of the three quantitative easing programs undertaken," Investec economist Victoria Clark said. The market anticipates Yellen will announce a date to expect increased interest rates, which may encourage investors for the upcoming phase.

At 5:19 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,299.20 Down $8.00
• Silver, $19.63 Up $0.07
• Platinum, $1,444.40 Down $12.80
• Palladium, $893.80 Down $1.70

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