Daily Gold & Silver Market Report – 11/20/2015
Jennifer Carter
11/20/2015 9:37:00 AM
GOLD REBOUNDS SLIGHTLY AS RATE INCREASE FEARS EASE
Gold spot is up Friday morning after falling to a six-week low. The rally started Thursday on expectations the Federal Reserve will slowly raise the interest rates. Gold spot saw its lowest point since February 2010 on Thursday, hitting $1,064.95 per ounce. Friday, spot Gold was up 0.14 percent at $1,083.61 an ounce and is set to end the week little changed overall. Interest rate fear has increased since the strong U.S. jobs data earlier this month, which first triggered the drop in spot. "We are still unclear how much of a rate hike there will be by the Fed, but given all the comments which we had from the [Federal Open Market Committee] minutes, one element is clear — it is not going to be very aggressive," Ava Trade market analyst Naeem Aslam said. "Hence we have seen the massive selling pressure getting squeezed out."
Oil price recovery hope stalled Friday as oil traded near a three-month low on a strong U.S. dollar, which neared a seven-month high. The dollar’s strength effects everything from Precious Metals to coal. "The drivers that pushed prices lower are still there," ING commodity strategist Humza Shah said, referring to the strong dollar and increasingly efficient U.S. shale operations. "Any rally today is going to have a difficult time finding traction." Libby George of Reuters wrote, "Market data suggests oil traders are preparing for another downturn in prices by March 2016, as forecasts for an unusually warm winter dent demand and Iran prepares for post-sanctions crude oil exports."
At 8.37 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,085.20 Up $3.80
- Silver, $14.32 Down $0.02
- Platinum, $861.20 Up $3.10
- Palladium, $551.90 Up $9.90
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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
