Daily Gold & Silver Market Report – 2/19/2015

Marcey Hollon

2/19/2015 11:45:00 AM

GOLD GAINS ON FED’S STANCE; U.S. JOBLESS CLAIMS FALL

Gold made gains after January’s Federal Reserve policy meeting minutes showed concern for raising interest rates too soon. The minutes also revealed the struggle to shore up solid U.S. economic growth with weakness in international markets as well as continued concern regarding falling inflation expectations. "Bears were firmly in control until the dovish comments from the (Fed) minutes came out ... the market was surprised with most expecting the first of many rate (increases) in June -- this now looks to be off the table," Deutsche Borse's MNI International senior metals analyst Tony Walters said.

The shortened work week may have contributed to an unexpected decline in new claims for unemployment benefits; however, signs point to a strengthening labor market. The number of job seekers per every open position is a key measurement of the labor market slack, which in December hit its lowest level since 2007. While many economists believe strengthening labor market conditions will sway the Federal Reserve’s concerns over low inflation and allow U.S. central banks to raise interest rates, the minutes suggest policymakers are not in a hurry to hike rates. Key short term interest rates have been kept near zero since December 2008.

At 12:45 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,211.90 Up $8.90
• Silver, $16.50 Up $0.15
• Platinum, $1,168.30 Up $0.10
• Palladium, $788.60 Up $11.10

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