Daily Gold & Silver Market Report - 6/17/2015

Brandi Brundidge

6/17/2015 10:31:00 AM

METALS PRESSURED BY FED STATEMENT; BANK OF CHINA SETTING GOLD PRICES  

Precious Metals are flat Wednesday ahead of the Federal Reserve’s statement. Fed Chair Janet Yellen is expected to speak on current economic conditions, and the market anticipates hints regarding a timeframe of an interest rate increase. The U.S. economy has shown signs of recovery, which is a key aspect in the Fed’s decision to hike interest rates. “The rate move is a pretty 50/50 call between September and December and it's very data-dependent,” Deutsche Bank analyst Michael Lewis said.

The Bank of China has officially joined the group of creditors that sets global Gold prices, making it the first Chinese bank to set Gold prices, which will assist with its role in the international financial market place. “Although ... the world’s largest Gold producer and consumer, China has never played a major role in the global Gold fixing,” Bank of China’s U.K. general manager Yu Sun said. “Bank of China’s direct participation in the Gold auction would reinforce the connection between the Chinese domestic market and overseas markets.”  China and India are the two leading consumers of Gold with over 50 percent of global demand. The addition of China has been welcomed by Gold market supporters who believe it will lead to an increase in trading volumes and price transparency. 

At 1:56 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,179.10 Down $4.80
• Silver, $16.15 Up $0.07
• Platinum, $1,078.50 Down $2.30
• Palladium, $732.40 Down $2.40

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