Daily Gold & Silver Market Report–1/27/2016

Brandi Brundidge

1/27/2016 10:47:00 AM

GOLD BENEFITS FROM WEAK MARKET; FED STATEMENT RELEASED

So far in 2016, Gold has been supported by a weak stock market, after the metal fell 10 percent in 2015. "A potential further decline in equities and market uncertainty about global growth is a good environment for Gold because investors want something defensive," ETF Securities analyst Martin Arnold said. Fears in the marketplace have added safe-haven appeal back to the yellow metal.  A few big factors have been the economic slowdown in China, pressured oil prices and a dwindling stock market that has affected the U.S. dollar.  Gold is currently benefiting from these market conditions and could continue to until each one corrects itself, which could take longer than most think. 

The Federal Reserve is wrapping up its January interest rate meeting and the market anticipates the policy statement released later Wednesday.  This meeting is not as significant as most Fed policy meetings, but numerous rumors suggesting the Fed will not meet its goal to increase rates four times this year has investors concerned. "The bond market is expecting barely one hike. There's a bigger gap here," BlackRock bond guru Jeff Rosenberg said. "But the Fed has to be careful about how much it acknowledges that dovish sentiment, because they just gave you confidence and were validating their normalization plan."

At 11:45 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,119.50 Down $3.10
• Silver, $14.56 Down $0.06
• Platinum, $882.90 Up $5.00
• Palladium, $500.10 Up $6.40

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