Daily Gold & Silver Market Report – 11/13/2015

Jennifer Carter

11/13/2015 10:58:00 AM

INCREASED LIKELIHOOD OF RATE INCREASE KEEPS GOLD DOWN

Gold is on track for its fourth straight week of loss as investors are leaning toward an interest rate hike this December. U.S. Federal Reserve officials are lined up behind the December rate increase because the risks of delaying an increase are now roughly even with the risks of increasing rates too soon. Spot Gold was down 0.3 percent Friday morning at $1,080.80 an ounce, having touched its lowest since February 2010 at $1,074.26. Platinum EFTs are also affected due to a strong payroll report. "This additional near-term supply from ETFs and other liquidation took Platinum to seven-year lows and undermined Palladium also," HSBC said in a note. "While we find physical demand for the [Platinum group metals] from industrial sources to be broadly steady, investors are retreating and we see no early signs of further production restraint."

U.S. producer prices dropped in October for the second month in a row. Quiet inflation pressure from this data would argue against a December rate increase from the Fed. A strong U.S. dollar and global demand have stifled price pressures, leaving inflation well below the Fed's 2 percent target. However, economists still expect an interest rate increase next month after October’s robust employment report. Import prices are falling as well, so producer prices will probably remain weak.

At 10:58 A.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

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.