Daily Gold & Silver Market Report–1/28/2016

Marcey Hollon

1/28/2016 1:03:00 PM

GOLD RETREATS AS WALL STREET RISES; OIL SOARS ON PRODUCTION CUTS

Gold backed off its recent high Thursday, falling 1 percent on a rally in oil prices and U.S. stocks opening higher. Gold had been at a 12-week high as the Federal Reserve kept interest rates unchanged, saying it is “closely monitoring” the global economy.  "(Gold) did jump very much higher overnight, so we're seeing some selling into that rally right now," Mitsubishi analyst Jonathan Butler said. "We're getting up towards the $1,130 [per ounce] level and there's some fairly significant technical resistance once we get up to $1,136." Higher interest rates can boost the dollar but also raise the cost of holding non-yielding bullion.

Oil prices got a lift from news that Saudi Arabia proposed oil producing countries cut production output by 5 percent. Oil prices have been held down due to a glut in supply on the global market. The proposed production cuts could help reduce supply and allow prices to rebound. Brent crude was able to rise to almost $36 per barrel while U.S. crude rose to $33 per barrel on the news. 

 

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

• Gold, $1,118.00 Down $0.40
• Silver, $14.31 Down $0.21
• Platinum, $867.30 Down $15.80
• Palladium, $491.90 Down $11.30

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