Daily Gold & Silver Market Report – 12/18/2015

Jennifer Carter

12/18/2015 9:15:00 AM

DOLLAR RECOVERS FROM FED INTEREST RATE HIKE

The Federal Reserve increased interest rates for the first time in nearly a decade, sparking a surge in the dollar and global stocks. After bottoming out Thursday at $1,047.25 an ounce, within a few dollars of a six-year low reached on Dec. 3, Gold was up 0.49 percent Friday at $1,056.56 an ounce. The possibility of the rate increase had investors on the fence this year. Now the focus will turn toward the pace of further increases, making some think Gold could still go as low as $1,000 an ounce. "Hiking cycles aren't always bearish for Gold. The data is pretty mixed historically," Macquarie analyst Matthew Turner said. "The Fed is more aggressive in its forecast of interest rate rises than the market, but so are they in their expectation of rising inflation. One will only come true if the other does. That might support Gold, or at least neutralize the hiking cycle."

Stocks fell Friday as selloffs in the commodity markets showed no signs of slowing. Further affecting stock is the excess of oil, as crude is on track for a third-straight weekly loss. Exxon and Chevron shares were down 0.6 percent in premarket trading. Post-rate hike, the dollar lost some of its steam as well.  Investors are wary about the impact of a stronger dollar and weakening commodity prices on the global economy. U.S. stocks closed lower Thursday, led by declines in energy and materials shares.

At 9:15 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,062.40 Up $9.50
• Silver, $13.98 Up $0.18
• Platinum, $853.70 Up $8.00
• Palladium, $557.00 Down $1.50

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