Daily Gold & Silver Market Report – 5/27/2015

Brandi Brundidge

5/27/2015 11:08:27 AM

STRONG DOLLAR WEIGHS ON GOLD; BERNANKE FOCUSES ON RATE INCREASE

The U.S. dollar saw its biggest daily rise in two years Tuesday, pushing Precious Metals prices down on the Federal Reserve’s confirmation of an interest rate increase in the near future. “Gold got hit by a double whammy yesterday, first of all from the dollar move higher, which kicked off on Friday, but also speculative data which showed a 140 percent jump as of last Tuesday,” Saxo Bank's head of commodity research Ole Hansen said. “Today we have stabilized once again ahead of the [$1,170/80 per ounce] band of support.” Although Silver fell 2.4 percent Tuesday, it has been the best-performing Precious Metal since the end of April, increasing 3.4 percent, which is its largest monthly gain since January.  

Former U.S. Federal Reserve Chairman Ben Bernanke, who joined an open interview in Seoul Wednesday, shared his thoughts on the Fed hiking interest rates, saying, “I don't know when (the rate hike will come), but when that begins, that's good news, not bad news because it means the U.S. economy is strong enough.” Reflecting a healthy economy may be one reason Bernanke supports the Fed’s decision. Bernanke served two terms as Fed chairman, from 2006 to 2014, and oversaw the Fed’s during the financial crisis of the late 2000s. Last year, the Fed exited their quantitative easing program, feeling the U.S. economy was stabilizing.

At 12:08 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,189.40 Down $0.60
• Silver, $16.75 Down $0.07
• Platinum, $1,121.60 Down $3.50
• Palladium, $787.00 Up $4.80

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