Daily Gold & Silver Market Report – 1/20/2016
Brandi Brundidge
1/20/2016 9:51:00 AM
GOLD REBOUNDS ON STUMBLING OIL PRICES, U.S. STOCK MARKET
Gold hovered over the $1,100 per ounce threshold Wednesday morning on rising concerns over China’s economic growth after the International Monetary Fund cut the country’s global growth forecast three times in less than a year. "Gold's safe-haven rationale is back in vogue," Citigroup analysts said in their 2016 commodities outlook. Gold reached a two-month high of $1,112 per ounce Jan. 8 due to weak development in China and a fragile U.S. stock market. The year is just beginning and the U.S. stock market has not performed as many investors hoped. The S&P 500 has fallen 8 percent in its first 11 sessions and is forecast to drop another 7 percent this quarter. Precious Metals prices could receive needed support in 2016 from a tumbling stock market, much like in 2008.
The crude oil industry is still in trouble with an overabundance of oil as demand remains down. “It is the third year in a row we have more supply than demand,” International Energy Agency Executive Director Fatih Birol said in a Bloomberg Television interview. “Prices will be still under pressure. I don’t see any reason why we have a surprise increase in the price in 2016.” Low oil prices are to blame for today’s slump in the U.S. stock market, as crude oil fell below $28 per barrel.
At 10:51 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,104.20 Up $12.50
- Silver, $14.18 Down $0.03
- Platinum, $818.60 Down $12.70
- Palladium, $486.60 Down $11.30
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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
