Morning Gold & Silver Market Report – 12/2/2014
Brandi Brundidge
12/2/2014 9:28:00 AM
GOLD BREAKS WITH STRONGER DOLLAR; OIL PRICES CONTINUE TO FALL
A solid U.S. dollar pressured Precious Metals this morning as oil prices continue to decline, indicating a boost in the economy. “There is extremely chopping trading going in the year end ... concerns over the impact of lower prices on inflation and what lower inflation does to a central bank's policy are driving factors at the moment,” BofA Merrill Lynch analyst Michael Widmer said. The U.S. Federal Reserve potentially increasing interest rates in the coming months could mean additional lifts to the dollar, which could weigh on non-interest-bearing assets such as bullion.
The Organization of Petroleum Exporting Countries (OPEC) met November 27 to decide whether they would cut production by a targeted 30 million barrels a day. OPEC rejected the change and ever since oil prices have plummeted. “The only events that can quickly change market sentiment are an OPEC policy decision or a geopolitical crisis, which is something you can’t predict,” Citi Futures Perspective energy analyst Tim Evans said by phone yesterday. “The chances of a bullish surprise from OPEC are now in the rearview mirror, so the only way oil’s going to turn around quickly is for a geopolitical crisis to occur.”
At 11:40 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,202.70 Down $19.40
- Silver, $16.49 Down $0.27
- Platinum, $1,220.20 Down $23.40
- Palladium, $802.40 Down $5.80
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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
