Daily Gold & Silver Market Report – 1/13/2015

Brandi Brundidge

1/13/2015 10:29:00 AM

GOLD HITS 12 WEEK HIGH; CRUDE OIL REACHES SIX YEAR LOW

Gold continues to climb reaching its highest point since mid-October at $1,243.60 per ounce with the stock market and currencies reacting seriously to sliding crude oil prices.  For the month of January, Gold has jumped five percent as the U.S. economy has become pressured with equities dipping, which has caused concern over whether the Fed will increase interest rates anytime soon. "There is an element of beginning-of-the-year exuberence in gold,carrying over from the relative weakness in the equity markets at the moment," Mitsubishi analyst Jonathan Butler said.  "The fact that gold can rally despite the dollar being relatively strong says something of the uncertainty regarding the U.S. economy," Butler said. "There's a question over whether we'll revert to gold as a safe haven, as we've seen in recent days, or if U.S. growth is going to pull through and ultimately drive the dollar higher, with negative implications for gold.” 

Oil prices hit their lowest point in nearly six years today as Brent crude oil fell to $45.19 a barrel down 3.5 percent for the day.  The market is showing signs of concern as oil prices have fallen 60 percent since June and do not show any signs of recovery.  It has been revealed that policymakers are alarmed that lower oil prices could push major economies into a deflation period even though it has been pointed out that prices help consumers’ pockets.  The European Central Bank is expected to unveil a new fiscal policy that includes government bond buying possibly at its next policy meeting on January 22. 

At 11:30 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,241.50 Up $6.70
• Silver, $17.25 Up $0.64
• Platinum, $1,247.80 Up $6.80
• Palladium, $820.30 Up $5.20

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