Daily Gold & Silver Market Report – 4/14/2015

Lorrie Freeman

4/14/2015 4:41:00 PM

Gold Responds to Weaker Dollar; U.S. Economy in “Good Shape”

Gold cut some of its earlier losses Tuesday as the U.S. dollar decreased in response to weaker-than-expected retail sales and producer price data. The Commerce Department said Tuesday retail sales increased .9 percent, which was below the 1 percent forecast by economists. “We expect Gold prices to head lower, due to a stronger dollar and improved risk sentiment in financial markets… which leads to flows out of Gold and into riskier assets,” Danske Bank senior analyst Jens Pedersen said. “If you look at the U.S. money market, a hike has not been priced out aggressively so the beginning of the hiking cycle this year could be more negative for Gold.”

International Monetary Fund (IMF) chief economist Olivier Blanchard said Tuesday he believes the economy is in “good shape” despite the organization’s outlook. “The fundamentals are in decent shape. The banks are in decent shape. Their corporations have cash and households have decreased debt, so the elements you need for sustained growth are there,” Blanchard told CNBC’s “Squawk on the Street.” These comments came after the IMF said the global growth forecasts remained unchanged. It warned, however, the economic recovery remains unstable, with greater uncertainty as geopolitical tensions and financial worries linger. 

At 5:40 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,194.60 Down $7.40
• Silver, $16.23 Down $0.17
• Platinum, $1,152.80 Down $2.10
• Palladium, $765.50 Down $7.90