Daily Gold & Silver Market Report – 4/29/2015

Brandi Brundidge

4/29/2015 8:42:00 AM

METALS AWAIT FED STATEMENT; WEAK U.S. GDP DATA RELEASED

Precious Metals fell slightly ahead of the Federal Open Market Committee statement, expected Wednesday.  Investors await the Federal Reserve’s statement on increasing interest rates after weak U.S. economic data pushed the dollar to a two-month low against other major currencies.  “However, any delay to the interest rates hike may cause more support to [Gold] prices, either via improving sentiment in the futures market or weakening the dollar further,” Julius Baer analyst Carsten Menke said.  The market will receive a better perspective on the U.S. economy Wednesday, as Q1 gross domestic product (GDP) data is due only hours before the Fed statement.

The U.S. Commerce Department reported Wednesday the GDP grew at a 0.2 percent annual rate, the softest reading in a year.  This is a step in the wrong direction as 2014 Q4 growth was measured at a 2.2 percent pace. The main cause is believed to be this year’s weather, which drove less consumer spending and was a major hit on construction. It is up in the air whether the Fed’s statement will acknowledge the weak growth or possibly ignore it. 

At 9:41 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,210.90 Down $5.90
• Silver, $16.70 Up $0.01
• Platinum, $1,158.10 Down $1.50
• Palladium, $777.70 Down $5.50

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