Morning Gold & Silver Market Report – 11/11/2014

Brandi Brundidge

11/11/2014 8:32:00 AM

METALS PRICES MAKE MINOR MOVES; FED INTEREST RATES TOO LOW

A stronger U.S. dollar and rising stocks reflected in the Gold price this morning, as the yellow metal fell slightly. Increased physical demand is also helping Gold. “Retail demand is very strong since prices came off,” Heraeus trader Alexander Zumpfe said. “Overall, physical demand is lending some support – Asia is also showing steady buying interest, though not on extreme levels.” Gold is down 4.3 percent this year, due heavily to the U.S. economy making a healthy recovery, which has created a stronger dollar and pressured safe haven assets.

Philadelphia Federal Reserve President Charles Plosser shared with CNBC his beliefs over the U.S. economy’s low interest rates and how they are affecting the nation. Plosser thinks there are visible signs showing interest rates are extremely low, such as slight wage growth and falling oil prices. He stated, “There is no precedented history to have rates at zero. I think we are really behaving in a way which is outside of historical norms and that should make us nervous … Given the unemployment rate, and even given low inflation, we are below where we would normally be.” 

At 9:37 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,158.40 Down $4.40
• Silver, $15.65 Down $0.12
• Platinum, $1,199.70 Down $9.20
• Palladium, $766.20 Down $1.10

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