Daily Gold & Silver Market Report – 5/14/2015

Marcey Hollon

5/14/2015 12:00:00 PM

GOLD HITS THREE MONTH HIGH; JOBLESS CLAIMS HIT 15 YEAR LOW

Mixed U.S. data pushed back expectations of a Federal Reserve interest rate increase, pressuring the dollar and pushing Gold to a three-month high. "I'm forecasting Gold to average $1,200 [per ounce] this quarter, as a slightly weaker dollar will continue to be supportive until we see some stronger data points," Citigroup strategist David Wilson said. "Only a rebound in employment data will start triggering talks about an imminent interest rate hike again because now expectations have been dampened." Strong 2014 data pointed to the Fed raising interest rates from record lows, however, slow growth in the first quarter of 2015 pushed the rate hike back. The Federal Reserve said rates will only increase when signs of a strengthening economy hold steady.

Last week brought an unexpected fall in the number of filings for unemployment benefits, which points to a solid job market. The number of filings came in at 264,000 and have remained under 300,000 for 10 straight weeks, which is a threshold associated with a strengthening labor market.  Some economists had forecast claims to rise to 275,000. While the labor market appears to be tightening and the U.S. economy shows signs of improvement, the unexpected soft growth in the first quarter slowed policymakers’ plans to raise interest rates. The Federal Reserve has kept short term rates near zero since December 2008.

 

At 12:59 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,227.00. Up $6.00
• Silver, $17.49 Up $0.21
• Platinum, $1,162.80 Up $11.00
• Palladium, $781.30 Down $9.40

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