Daily Gold & Silver Market Report – 7/20/2015

Paul Stevens

7/20/2015 11:53:00 AM

METALS ON DECLINE WITH CHINESE SELL OFF

Precious Metal prices are on the decline, with Gold hitting a five-year low, as Chinese consumers offloaded metals overnight. A key contract traded on the Shanghai Gold Exchange contained nearly 3,000,000 lots and has been weighing on metals. In comparison, nearly 27,000 lots were traded Friday when Gold fell more than one percent. As investors prepare for the anticipated interest rate hike by the Federal Reserve, some are finding it harder to hold the metal.  Societe Generale analyst Robin Bhar said, “Illiquidity was important in the Asian overnight move, with Japan and other countries on holiday ... it was just a bit of a bear raid and there was nobody on the other side to mop up the selling.”

Although stocks have been on a recent winning streak, not everyone is convinced the markets are as strong as some believe.  News of the stock market meltdown in China along with the Greek debt crisis have some strategists expecting bigger problems down the road. Wells Capital Management chief investment strategist Jim Paulsen said the market may rise in the short term, “but we may get a full blown correction yet,” adding it has been the “third-longest period in post-war history without a correction.”

At 12:53 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,111.20 Down $24.40
• Silver, $14.93 Down $0.03
• Platinum, $989.10 Down $13.20
• Palladium, $613.80 Down $7.30

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