Daily Gold & Silver Market Report – 7/23/2015
Marcey Hollon
7/23/2015 11:00:00 AM
GOLD BOUNCES BACK FROM 5 YEAR LOW; JOBLESS CLAIMS DROP TO 41 YEAR LOW
Some investors took advantage of a retreat in the U.S. dollar and bought back into the market Thursday as Gold rose above the $1,100 per ounce mark. Gold posted its biggest one-day loss in the last two years and pushed past key levels. The expectations of the Federal Reserve raising interest rates this year could boost the cost of holding the non-yielding bullion and lend strength to the dollar. “Gold is falling out of favor as the Fed is preparing to increase borrowing costs,” AvaTrade chief market analyst Naeem Aslam said. “This will remain the major hurdle for any upside move for the Precious Metal and traders will likely be selling into these rallies. The bounce in Gold is nothing but a technical trade, as most major momentum indicators are showing that the recent sell-off is overdone.” Investors dumped $500 million of Precious Metals in mere seconds on the Shanghai Gold Exchange Monday, furthering Gold’s decline. Reports show sales of bullion coins in the United States hit a two-year high this week.
New unemployment benefit applications fell to a 41 1/2 year low last week, suggesting the labor market is strengthening. This news, along with positive housing data, further points to the Federal Reserve raising interest rates this year. Many economists think the Fed will raise rates in September. Fourteen of the last 16 months saw job growth exceed 200,000, bringing the unemployment rate to 5.3 percent, which is in line with the Federal Reserve’s range of 5.0-5.2 percent to be considered full employment.
At 11:59 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,096.60 Up $1.40
- Silver, $14.82 Down $0.04
- Platinum, $976.90 Down $4.00
- Palladium, $621.50 Down $7.30
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
