Daily Gold & Silver Market Report – 11/12/2015

Marcey Hollon

11/12/2015 1:09:00 PM

GOLD NEARS 6-YEAR LOW ON FED PRESSURE; IMF SAYS FED SHOULD WAIT

Heightened expectations of an interest rate increase by the Federal Reserve have Gold nearing a six-year low. Continued positive economic reports have boosted expectations of the Fed raising rates this year. "The Fed has been driving the bulk of the move down from around $1,200 [per ounce] to below $1,100," Standard Chartered analyst Paul Horsnall said. "But ultimately, we think the Fed will become a positive for Gold. … There has been so much concentration on when the first hike is coming, we don't think the debate has moved on to when the second and third hikes will come. We don't think there will be a third hike, and we think in fact the Fed will be in cutting mode by the end of next year. That's very positive for Gold." Investors continue to watch for signs and comments from Fed officials as to the timing of a rate hike.

The International Monetary Fund (IMF) said the U.S. Federal Reserve should hold off on an interest rate hike and wait for signs of rising inflation. The IMF stated in the note that very low inflation justifies keeping a loose monetary policy in place. "The Federal Open Market Committee’s (FOMC) decision should remain data-dependent, with the first increase in the federal funds rate waiting until continued strength in the labor market is accompanied by firm signs of inflation rising steadily toward the Federal Reserve’s 2 percent medium-term inflation objective," said the note, which does not necessarily reflect the views of the IMF’s executive board. Rates have been held down since 2008 and indecision remains on if the economy is strong enough to handle an increase. 

At 2:07 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,085.60 Down $2.80
• Silver, $14.35 Down $0.01
• Platinum, $878.50 Down $4.60
• Palladium, $563.80 Down $14.20

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