Daily Gold & Silver Market Report – 8/26/2015

Brandi Brundidge

8/26/2015 4:02:00 PM

METALS PRESSURED AS MARKETS REBOUND; FED COULD HIKE RATES IN OCTOBER

This week, commodity and equity markets were chaotic as traders liquidated Precious Metals to cover losses elsewhere. China’s central bank also cut interest rates, changing the amount of reserves banks will hold.  “If those trends continue, then certainly it will create some short-term pressure on Gold prices as the initial fear in the marketplace that we saw yesterday dissipates,” Standard Chartered analyst Nicholas Snowden said. As for other Precious Metals performance, Palladium fell to its lowest price in five years, down 2.7 percent, Platinum is down 0.2 percent and Silver fell 0.1 percent. 

Traders and investors project October for when a U.S. Federal Reserve interest rate increase. The reasoning behind their assumption is that September is quickly approaching and the economy is not performing at the rates the Fed suggested it should before a rate hike. If they wait until December, it may be problematic for investors who have already liquidated assets, which is normal toward the end of the year. The Fed has a meeting planned for October, but at this time there is no scheduled press conference.  “An off-cycle hike in October is a possibility if September is too soon because of market jitters,” Bank of Montreal’s global head of foreign-exchange strategy Greg Anderson said.

At 5:15 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,127.90 Down $13.40
• Silver, $14.20 Down $0.53
• Platinum, $983.40 Up $5.70
• Palladium, $534.70 Down $8.40

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