Daily Gold & Silver Market Report – 10/7/2015
Brandi Brundidge
10/7/2015 2:03:00 PM
GOLD DIPS ON STRONG DOLLAR; RATE HIKE STILL UNCERTAIN
Gold dipped lower in reaction to a stronger U.S. dollar Wednesday, as the Federal Reserve’s decision to possibly postpone raising interest rates remains on investors’ minds. Domestic and global issues have caused concern on whether the U.S. is ready for an interest rate hike. Last week’s non-farm payrolls report fell short of expectations by about 60,000 jobs. Additionally, while American exports are performing poorly, German industrial output reported its largest drop in over a year for August. Tuesday, and for the second time this year, the International Monetary Fund cut its global growth forecasts. At this point, the market expects the central bank to delay hiking rates until 2016.
San Francisco Federal Reserve President John Williams spoke to reporters Tuesday, sharing his views on the decision to increase interest rates. Williams suggests the best strategy is for the Fed to communicate their opinions on how the economy is performing so that it is no surprise when they move forward with a hike in interest rates. If there is no communication, the central bank stands to possibly cause chaos in the financial market. "We are essentially at full employment," Williams said. "We have to keep an eye on where the goal posts are." Williams believes full employment is around 5 percent, while unemployment is currently at 5.1 percent.
At 3:02 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,148.70 Down $0.70
- Silver, $16.12 Up $0.05
- Platinum, $947.30 Up $11.60
- Palladium, $699.50 Down $10.20
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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
