Daily Gold & Silver Market Report 4/17/2015
Jennifer Carter
4/17/2015 9:25:00 AM
LOOMING RATE HIKE STILL AFFECTING GOLD
Gold is back up above $1,200 an ounce Friday morning despite uncertainty the Federal Reserve will raise interest rates this year. Since Gold generally works in negative correlation to the U.S. dollar, rising rates would boost the dollar while lifting the opportunity cost of holding non-yielding bullion. “Expectation once again is for rate rises to be pushed out even later. September or October has been our base assumption for some time, but I've heard talk in the last couple of days of rate rises being pushed out to 2016,” Mitsubishi analyst Jonathan Butler said. Spot Gold rose 0.5 percent Friday, while U.S. Gold futures for June delivery rose $4.90 per ounce to $1,202.90.
The expected interest rate is also affecting oil, with gas prices seeing their largest increase since February 2013, rising 3.9 percent. Food prices slipped 0.2 percent last month. March's consumer price gains are likely to strengthen the Fed's view that inflation will move toward their 2 percent target as the dampening effect of lower energy prices fades. Consumers are waiting to see when the rate hike will happen. In the meantime, it will not only affect metals, but oil and food prices as well.
At 9:25 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,207.00 Up $6.20
- Silver, $16.38 Up $0.00
- Platinum, $1,166.48 Up $6.20
- Palladium, $782.10 Up $0.40
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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
