Daily Gold & Silver Market Report – 2/26/2015
Marcey Hollon
2/26/2015 10:51:00 AM
GOLD UP ON U.S. RATE HIKE VIEW; U.S. CONSUMER PRICES FALL
Chinese buyers investing in Gold upon return from the Lunar New Year break and Federal Reserve Chair Janet Yellen indicating the U.S. Central Bank is in no hurry to raise interest rates gave Gold a one percent boost Thursday. "The combination of China returning, Yellen pushing the can further out, bond yields lower and exchange-traded product demand picking up has helped create a floor following a $117 sell-off (in Gold) since January," Saxo Bank's head of commodity strategy Ole Hansen said. "I see it potentially building on this up towards $1,235 [per ounce], while a break back above the 200 day moving average (currently at $1,246) will be one step too far at this stage." Data showed net Gold imports to Hong Kong rose to 76.118 metric tons, up from a three month low of 71.381 metric tons in December.
January saw U.S. consumer prices post their biggest drop since 2008. Gasoline prices also continued to fall, which could contribute to the Reserve holding off an interest rate hike. "It will be some time before the Fed gets the necessary confirmation that inflation will move back to target in the medium-term, and we continue to see September as the most natural starting point for the lift-off in rates," Securities Deputy Chief Economist Millan Mulraine said. The U.S. Labor Department’s Consumer Price Index fell 0.7 percent in January after slipping 0.3 in December, marking the third straight month of decline.
At 11:50 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,212.90 Up $8.60
- Silver, $16.67 Up $0.15
- Platinum, $1,179.40 Up $9.60
- Palladium, $811.10 Up $0.90
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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
