Daily Gold & Silver Market Report – 6/4/2015

Marcey Hollon

6/4/2015 11:06:00 AM

GOLD WILTS ON U.S. DATA; WALL STREET PRESSURED AFTER IMF URGES RATE HIKE DELAY

Upbeat U.S. economic data has Gold down and is spurring speculation of an interest rate hike soon. Focus is now on Friday’s non-farm payroll data, which is viewed as a key measure of the world’s largest economy and may give further insight to Gold’s direction. An increase in the interest rate could lift the cost of holding the Precious Metal and boost the dollar. “A lot of (Gold's weakness) is pricing in expectations for a fairly positive non-farm payrolls reading tomorrow. All things being equal, it should have been another pretty solid month of gains,” Mitsubishi analyst Jonathan Butler said. “For the moment, Gold is still very much data-driven. The ADP payrolls report (on Wednesday) was pretty solid, and we did see a move downward in Gold on the back of that.”

A selloff in the global bond market and a dramatic drop in first-quarter nonfarm payroll productivity have Wall Street under pressure. U.S. stocks rebounded after remarks from the International Monetary Fund warned a U.S. Federal Reserve interest rate increase should be held off until 2016. “Based on the mission’s macroeconomic forecast, and barring upside surprises to growth and inflation, this would put lift-off into the first half of 2016,” the IMF said, adding there should be no increase until there are signs of a boost in wages and inflation. Economists say if muted productivity growth is sustained, it could increase a risk of quicker inflation and would call for a more aggressive rate increase than the markets expect.

 

At 12:04 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,176.60 Down $10.90
• Silver, $16.25 Down $0.34
• Platinum, $1,099.70 Down $5.40
• Palladium, $756.70 Down $3.30

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