Daily Gold & Silver Market Report – 2/23/2015

Paul Stevens

2/23/2015 9:44:00 AM

METALS FLAT AHEAD OF YELLEN TESTIMONY

Precious Metal prices are relatively flat through early morning trading as Gold reached its lowest point in seven weeks.  A lack a major investor buying during the Chinese Lunar New Year along with Greece’s newest agreement with eurozone finance ministers has triggered some selling as investors take on risker assets.  Although metals are experiencing a small pullback, many look to Federal Reserve Chairwoman Janet Yellen’s semiannual address to the Senate Banking Committee Tuesday and the release of other important economic data for direction. Mitsubishi Corp strategist Jonathan Butler said, “Janet Yellen's testimony ... will be picked over for any signs of when interest rates are going to rise... Gold is going to trade on the back of that.”

Although the U.S. Federal Reserve is aiming for a mid-year rate hike for the first time in a decade, many are not convinced this is the best move as it would give the impression the world economy is growing resilient.  With China, Europe and Latin American countries continuing to struggle, data going forward will be closely watched and not everyone is convinced of a June increase from the Fed. Gustavo Reis, global economist at Bank of America Merrill Lynch said, “The outlook for some large emerging market economies such as Brazil, Mexico and Russia has deteriorated but the meaningful tailwinds of lower energy prices and global policy easing are likely to persist.”

At 10:45 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,208.60 Up $0.90
• Silver, $16.56 Up $0.20
• Platinum, $1,169.40 Down $1.10
• Palladium, $784.30 Up $4.00

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