Daily Gold & Silver Market Report – 9/18/2015

Jennifer Carter

9/18/2015 9:29:00 AM

GOLD A TWO-WEEK HIGH AS INTEREST RATE STAYS UNCHANGED

Gold is at a two-week high Friday morning due to the continued uncertainty of the first U.S. interest rate increase in a decade.  The decision by the Federal Reserve to leave the interest rate as is weighed on the U.S. dollar. Gold has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding the non-yielding asset. "The Fed statement had a clear dovish tone and this weighed on the U.S. dollar and supported Precious Metals," ABN Amro analyst Georgette Boele said. "In the near term that may continue. But we expect the upside to be limited ... as long as the Fed does not communicate that there will be no hikes for the time being, the tightening cycle continues to hang over the market."

Spot Gold was up 0.4 percent at $1,135.51 an ounce, staying on track to snap a three-week losing streak. The Fed’s comments on the state of the economy and slower growth in China continued a three-week slump for the dollar against other world currencies. “The market is disappointed because everyone expected a ‘back to normal’ signal,” Natixis Asset Management global chief economist Philippe Waechter said. “We are not there yet,” adding this non-action means the Fed thinks the U.S. economy is “very weak.”

At 09:28 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,142.30 Up $21.80
• Silver, $15.41 Up $0.32
• Platinum, $988.70 Up $19.30
• Palladium, $612.60  Up $11.40

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