Daily Gold & Silver Market Report–1/13/2016

Brandi Brundidge

1/13/2016 10:47:00 AM

GOLD STILL SAFE-HAVEN ASSET; OUTLOOK FOR OIL GLOOMY

Gold moved up Wednesday morning attempting to erase the past three days of losses due to a stronger U.S. dollar. “Gold remains a destination for ‘safe money’ during the flare ups of volatility and further weakness in global equities could fuel a continuation of the recent rally into the mid $1,100s [per ounce] in the near term,” analysts at The 7:00’s Report said Wednesday. They added that longer term, “Gold will take its cue from the dollar and [U.S. Federal Reserve] policy expectations.”  The market anticipates the Fed to increase interest rates twice in 2016 though the Fed has stated they will hike rates four times. 

Crude oil prices rose Wednesday after recently hitting a new 12-year low. Over the past two years, oil prices have been pressured due to oversupply. Recent Chinese economic concerns looming in the market could support a return to demand for the world’s crude oil sooner than expected.  “We expect some Chinese state-own oil companies to shut in some wells because at this price level, it is cheaper to import than to produce,” FGE consulting firm Managing Director of Beijing Kang Wu said.  Analysts forecast oil prices to remain down for a short period with Iran preparing to re-enter the oil exporting business along with U.S. shale producers not slowing down their production to meet actual demand. 

At 11:50 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,092.00 Up $4.00
• Silver, $14.23 Up $0.41
• Platinum, $853.30 Up $14.70
• Palladium, $495.00 Up $24.20

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