Daily Gold & Silver Market Report – 12/2/2015
Brandi Brundidge
12/2/2015 12:49:00 PM
GOLD PRESSURED BY ECB POLICY MEETING;FED MEETS NEXT WEEK
Gold fell back Wednesday as the dollar rose ahead of Thursday’s European Central Bank policy meeting, when the market anticipates additional stimulus to be announced. Gold hit a six-year low last week on growing speculation the Federal Reserve will finally increase interest rates this month as they have proclaimed all year. "We're seeing the end of the second act of a three-part drama for Gold. The first part was post-financial crisis, when the Fed was easing and Gold prices were going up. The second part has been since 2013, when the Fed has been moving towards its first tightening. Now we have to see what happens in part three. There doesn't seem to be any reason to see a big Gold bounce until the Fed actually raises rates," Macquarie analyst Matthew Turner said.
The market is closely eyeing the Federal Reserve’s last 2015 policy meeting, scheduled for December 15-16, for a possible interest rate hike announcement. The Fed knows they need to take economic data into account to determine the best action on increasing interest rates now or waiting until 2016. "Between today and the next [Federal Open Market Committee] meeting, we will receive additional data that bear on the economic outlook," Fed Chair Janet Yellen said Wednesday in her prepared remarks to the Economic Club of Washington. "When my colleagues and I meet, we will assess all of the available data and their implications for the economic outlook in making our policy decision."
At 1:50 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,057.40 Down $9.60
- Silver, $14.11 Down $0.06
- Platinum, $834.30 Down $2.10
- Palladium, $529.90 Down $10.30
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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
