Daily Gold & Silver Market Report – 12/16/2015
Brandi Brundidge
12/16/2015 9:24:00 AM
FED’S DECISION TO INCREASE RATES EXPECTED TODAY
Gold and Silver both rose Wednesday morning ahead of the Federal Reserve’s announcement on whether they plan to hike interest rates for the first time in nearly a decade. The market expects a proposal to increase rates slowly over time, which is supporting Precious Metal prices. Gold has made a comeback after nearly reaching a six-year low earlier this month due to the U.S. dollar fluctuating and global financial concerns. "The probability of a rate hike happening is about 80 percent, so quite a lot of that news has already been incorporated into Gold prices," Capital Economic analyst Simona Gambarini said. "We expect the Fed to be very cautious in the statement, explaining their view that rate hikes will be gradual and low rates will be here for longer. Everything will be dependent on a strong economic recovery. That will be quite positive for Gold."
Management expert and former General Electric Chief Jack Welch believes the Federal Reserve has no choice but to increase interest rates. "It would have been better to go last time actually. Conditions were better," he told CNBC's "Squawk Box," referring to the hike expected three months ago. "The economy is not any stronger. The commodities have gone further down." Welch also shared his thoughts on the U.S. economy, saying, "Things are not that great and the economy is not booming by any means." The Fed will issue its post-meeting statement Wednesday, 2 p.m. (ET) with a press conference at 2:30 p.m.
At 10:25 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,076.70 Up $11.90
- Silver, $14.20 Up $0.33
- Platinum, $878.00 Up $21.20
- Palladium, $572.10 Up $4.20
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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
