Daily Gold & Silver Market Report – 7/17/2015

Jennifer Carter

7/17/2015 9:29:00 AM

DOLLAR UP, GOLD DOWN DESPITE CHINA’S GOLD HOLDINGS

The dollar is looking for its biggest weekly rise since May, reinforced by data suggesting the U.S. will see an interest rate increase this year. The dollar is at a seven-week high against other major currencies like the euro. "The focus is turning to the U.S. rate cycle, and (the market reckons) a September rate hike is still, if not probable, at least possible," RBC Capital Markets global head of FX strategy Adam Cole said. "That's picked up from Greece as the main driver of our market ... From now the euro goes down primarily because the dollar is going up." 

China’s Gold holdings are up 57 percent from six years ago, which would make China the world's sixth largest official sector Gold holder after the U.S., Germany, the International Monetary Fund (IMF), Italy and France. "There has been ongoing market chatter that China had been amassing Gold, and that had gained more importance ahead of October, when the Chinese want to be included in the SDR (basket of global currencies). It was felt by many that they would be more open, and that would mean revealing any increase in their reserves," Societe Generale analyst Robin Bhar said. There was no immediate benefit, as spot Gold was down 0.1 percent at $1,143.73 an ounce, little changed from before the announcement.

At 9:49 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,140.40 Down $7.20
• Silver, $14.98 Down $0.12
• Platinum, $1,003.10 Down $9.50
• Palladium, $620.90 Down $13.10

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