Daily Gold & Silver Market Report – 4/9/2015

Marcey Hollon

4/9/2015 11:40:00 AM

GOLD FALLS ON FED TALK, U.S. JOBLESS CLAIMS DATA

Despite recent weak economic data, the U.S. Federal Reserve has kept alive expectations for an interest rate hike this year. Minutes from the Fed’s March meeting show they are keeping the option of a June interest rate hike. Gold fell more than 2 percent from Monday’s seven week high after U.S. jobs data gave expectations the Federal Reserve would delay a rate hike. “What happened after the U.S. non-farm payrolls on Friday was more of an exception, because people thinking the Fed would postpone the rate hike rushed to cover short positions,” Julius Baer analyst Carsten Menke said. “The longer-term trend for Gold is still down because... higher rates will happen eventually.”  Demand for Gold could be reduced on any rise in interest rates.

This U.S. Labor Department said Thursday the number of new jobless benefit claims increased to a seasonally adjusted 281,000 claims. This lower-than-expected number suggests March’s sharp slowdown may be temporary. A number below 300,000 is generally seen as a sign of a strengthening labor market. The four-week moving average, which is viewed as a better market measurement, fell by 3,000 last week to 282,250, though economists had forecast 285,000. The dollar rose and U.S. stock index futures trimmed losses on the news.

 

At 12:41 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,197.80 Down $8.00
• Silver, $16.29 Down $0.25
• Platinum, $1,158.80 Down $9.00
• Palladium, $764.40 Up $6.70