Daily Gold & Silver Market Report – 12/3/2015
Marcey Hollon
12/3/2015 11:15:00 AM
GOLD REBOUNDS FROM 2010 LOWS, WALL STREET LOWER AFTER ECB ACTIONS
The European Central Bank announced a minimum cut in its deposit rates Thursday but left the main refinancing rate, which sets the cost of borrowing for banks, unchanged. Investors expected the ECB to make the cut, however it was smaller than predicted. Gold rebounded from near a six-year low on the news. Federal Reserve Chair Janet Yellen has strengthening expectations of a December interest rate increase. "Today is the ECB day rather than Fed," MKS Head of Trading Afshin Nabavi said. "Every article I read and everyone I spoke to (ahead of the announcement) was thinking of a rate cut. When they left (the main refinancing) rate unchanged, the market was rather shocked. … The market in Gold obviously was extremely short and we hit some stops." The market will be watching for the non-farm payrolls due Friday for signs of the direction the Fed may take.
While the market expected the European Central Bank to extend easing, investors envisioned a bigger gesture, as the main rate for determining the cost of borrowing for bank was left unchanged. Wall Street opened higher Thursday yet quickly reversed course after the ECB news. Wednesday, Federal Reserve Chair Janet Yellen spoke before a Congressional committee, stating she was “looking forward’ to an interest rate increase and feels the U.S. economy has strengthened and recovered from recession. "Markets are still struggling with the dichotomy between the ECB and the Fed," Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, said.
At 12:13 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,060.80 Up $3.50
- Silver, $14.13 Up $0.04
- Platinum, $846.50 Up $13.10
- Palladium, $538.00 Up $11.20
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.
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
