Morning Gold & Silver Market Report – 11/21/2014
Paul Stevens
11/21/2014 8:46:00 AM
GOLD RISES AS CHINA SHOCKS MARKETS, CUTS INTEREST RATES
Precious Metals prices are rallying and picking up strength in early morning trading. News that China cut its benchmark interest rates surprised the markets and boosted Gold, helping the metal rally to a three week high. China is the world’s biggest Gold consumer and the surprise interest rate cut spurred expectations that demand for the yellow metal could rise. Mitsubishi analyst Jonathan Butler said, “Any measures that accelerate the spending power of the Chinese public are bound to be positive for Gold. (This could mean) additional spending power for Chinese consumers to buy jewelry and investment products.”
Shares around the world gained momentum Friday following China’s interest rate cut, causing prices to increase rapidly. While speaking in Frankfurt about the eurozone economy, European Central Bank President Mario Draghi said, “We will continue to meet our responsibility - we will do what we must to raise inflation and inflation expectations as fast as possible. If on its current trajectory our policy is not effective enough to achieve this ... we would step up the pressure and broaden even more the channels through which we intervene.” This news coupled with the surprise rate cut by China has some economists looking toward 2015 for major policy changes. Neil Williams, chief economist at fund manager Hermes in London, said, “The two together, (China cut, Draghi speech) suggest to me there is still a lot of hard policy work to be done next year.”
At 9:45 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,208.50 Up $14.60
- Silver, $16.61 Up $0.38
- Platinum, $1,235.80 Up $28.20
- Palladium, $792.50 Up $24.40
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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
