Daily Gold & Silver Market Report – 12/10/2015

Marcey Hollon

12/10/2015 11:44:00 AM

DOLLAR REBOUND POSES RISK TO GOLD; U.S. JOBLESS CLAIMS AT 5-MONTH HIGH

The U.S. dollar rebounded Thursday on expectations of the first interest rate increase in a decade at next week’s Federal Reserve meeting. Gold has lost 9 percent in value this year and higher interest rates could weigh on demand for the non-interest-paying metal. Another bearish factor for Gold is current weakness in oil, as Gold is often used as a hedge against oil-led inflation.  "Given the level of distress across the commodities complex, it wouldn't be surprising to see a test towards the $1,000 [per ounce] level," ING Bank senior strategist Hamza Khan said.

While the number of applicants filing for unemployment rose to a five-month high last week, the overall trend points to a tightening market. Claims continue to remain under the 300,000 threshold often associated with a healthy jobs market. More data showed a stronger U.S. dollar keeping a cap on imported inflation as crude oil prices remain low. The Labor Department reported import prices have fallen 15 of the last 17 months.  The weakness may be caused by the drop in oil, with prices at a seven-year low.

At 12:43 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,073.70 Down $6.00
• Silver, $14.19 Down $0.09
• Platinum, $852.40 Down $14.50
• Palladium, $541.10 Down $12.30

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