Mid-Day Gold & Silver Market Report –8/19/2014

Peter LaTona

8/19/2014 11:27:00 AM

GOLD & SILVER HEAD LOWER

Gold and Silver began the day attempting to push upward, but have since given up gains on the strengthening U.S. dollar. The U.S. dollar and Gold generally move in different directions and today is no exception. The U.S. dollar hit a nine-month high against the euro and rose against the basket of major currencies as well. Stronger than expected housing data was released this morning and with that, expectations rose that there would be an earlier than expected rate hike from the Federal Reserve. In July, U.S. housing starts surged 15.7 percent. "The improvement in housing starts may reduce the concern about the risks to the economy from stagnation in the housing market," Brian Daingerfield, currency strategist at the Royal Bank of Scotland in Stamford, Connecticut, said.

Precious Metal prices may find some support as events in Gaza heat up once again. Just hours ago, Israel launched attacks recalling their negotiations from Cairo truce talks. Israel is saying that three Palestine rockets hit southern Israel three hours before the ceasefire was to expire. Meanwhile, in Ukraine, Russia made it clear that although an agreement has been reached, with Russia bringing in humanitarian aid, there has been no progress made towards creating a ceasefire. Russian Foreign Minister Sergei Lavrov said, "finally, all questions have been resolved ... related to the Russian initiative to send 300 trucks with humanitarian aid… We are not able to report on positive results on reaching a cease-fire and on (a start to) the political process (to resolve the conflict)."

At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,297.40 Down $2.90
• Silver, $19.46 Down $0.22
• Platinum, $1,440.00  Down $6.20
• Palladium, $880.50 Down $15.40

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