Daily Gold & Silver Market Report – 12/16/2015

Marcey Hollon

12/17/2015 1:03:00 PM

GOLD DROPS AFTER FED RATE HIKE; GLOBAL STOCKS, DOLLAR RISE

The U.S. dollar surged while Gold fell one percent following the Federal Reserve raising interest rates Wednesday. Policymakers left the door open for more increases in 2016 but also stated they may take a gradual approach. Gold rallied Wednesday before the Fed announcement but had been down almost 10 percent overall this year. "What we have seen this year in Gold is largely going to continue but without the excitement of 'will the Fed or won't the Fed'," ICBC Standard Bank analyst Tom Kendall said. "Everything that the Fed said yesterday suggests that money looking for a home, looking for yield, is going to continue to prefer equities. … It is too early for valuation arguments for Gold or commodities to carry much weight."

The first U.S. interest rate increase in nearly a decade signaled confidence in what is the world’s biggest economy and had global stocks up. The dollar rose on the much-expected move by policymakers. Fed Chair Janet Yellen’s comments that the increase would be gradual and dependent on inflation helped calm markets. "They delivered what was the world's worst-kept secret," Neil Williams, chief economist at fund manager Hermes in London, said. Investors look to March for the next chance of another rate increase.

 

At 2:01 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,054.50 Down $25.60
• Silver, $13.83 Down $0.52
• Platinum, $846.00 Down $31.00
• Palladium, $559.40 Down $13.60

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