Daily Gold & Silver Market Report – 5/28/2015

Marcey Hollon

5/28/2015 11:39:00 AM

WALL STREET DOWN ON JOBLESS CLAIMS; GOLD FLAT ON STEADY DOLLAR, LOWER SHARES

U.S. stocks are down early Thursday on economic news at home and abroad. European officials downplayed talks of Greece’s much needed debt relief despite rising default concerns. World markets were pressured as major brokerages in China tightened requirements on margin financing, causing fear of further steps to reduce leverage in the market. While many economists expected U.S. jobless claims to fall, the number rose by 7,000 to 282,000. On Wednesday, the S&P 500 had its strongest day since May 14, however, muted trading along with low volumes suggest the gains are not sustainable. “There is a loss of liquidity in the market,” BMO Private Bank chief investment officer Jack Ablin said. “Investors should party as long as the music is playing because once it stops you're going to have to deal with the headache.”

Gold showed little movement Thursday as the dollar steadied amid uncertainty over Greece and lower global shares. Stronger demand for Gold bullion may result from the Greek debt crisis. European Central Bank Vice President Vitor Constancio talked openly about Greece’s default, which would be the first of its kind in the eurozone. Meanwhile, stronger U.S. data points to the Federal Reserve raising interest rates this year. Costs of holding non-yielding bullion can increase with higher interest rates. “Expectations of an easing of the tightening proved wrong so far … but the [U.S. Federal Reserve] is clearly ruling out next year,” Macquarie analyst Matthew Turner said. “It's like an impending dread, like an exam coming up that maybe won't be so bad after all but everyone is just getting a bit nervous and reluctant to take big positions.”

 

At 12:38 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,190.60 Up $1.90
• Silver, $16.74 Up $0.02
• Platinum, $1,115.20 Down $4.80
• Palladium, $784.10 Down $2.50

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