Closing Gold & Silver Market Report – 9/18/2014

Ted Prince

9/18/2014 4:22:00 PM

GOLD STEADIES ON SHORT COVERING

The Gold price steadied this afternoon as a round of short covering helped level the spot price following Wednesday’s dip that saw the yellow metal retreat to its lowest level since January.  Traders interpreted yesterday’s post Federal Open Market Committee meeting commentary to mean the Fed will be raising interest rates in the U.S. sooner than expected.   “Despite the language in the statement, it seems that the bank is preparing the market for higher interest rates, which can be seen as gold bearish,” Rob Kurzatkowski, senior commodity analyst with optionsXpress, said. “Tying the interest-rate policy to the labor market potentially gives the Fed justification for deviating from its low interest policy if labor conditions improve.”  Though the market price for Gold and Silver fell, increased demand for physical Precious Metals was prevalent as premiums among Asian markets saw a spike in premiums for bullion. 

U.S. stocks are trading higher for the third straight session as expectations for the perpetuation of low interest rates coupled with strong employment numbers yielded yet another all-time high for the S&P 500.  “The market’s still in Fed mode,” Joe Bell, a senior equity analyst at Schaeffer’s Investment Research Inc., said. “A majority of people are thinking July 2015 may be the rate increase and the market’s responding positively to the idea that rates aren’t coming any sooner.” 

At 5:00 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,226.90 Down $10.00
• Silver, $18.57 Down $0.21
• Platinum, $1,348.00 Down $15.20
• Palladium, $829.80 Down $9.30

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