Daily Gold & Silver Market Report – 2/3/2016

Brandi Brundidge

2/3/2016 11:07:47 AM

GOLD REACHING NEW HIGHS; FED STRATEGIES QUESTIONED

Gold is sitting right below a three-month high Wednesday as investors are moving toward safe-haven assets following the U.S. dollar and European shares edging lower.  "We are now hitting up against the 200-day moving average of $1,130 [per ounce].  A close above that level could help. We are probably seeing enough of a risk hedge trade but it's difficult to see how Gold is going to gain further strength without a major collapse in energy prices," Mitsubishi Corp analyst Jonathan Butler said. "  On Wednesday, oil hovered over $33 a barrel while remaining near to multi-year lows.  Investors are concentrating on Friday’s U.S. nonfarm payrolls to provide some insight on the economy’s current condition. 

Although the Federal Reserve increased interest rates in December for the first time in the past nine years, financial conditions haven’t necessarily strengthened.  According to a report from news service MNSI, New York Fed President Bill Dudley stated that monetary conditions have tightened since the rate hikes. The Fed met in January, but decided not to increase rates again. The post-meeting statement was altered, with the Fed removing the word “balanced” to describe risks to their stance.

At 12:07 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,140.90 Up $11.40
• Silver, $14.73 Up $0.39
• Platinum, $880.20 Up $23.50
• Palladium, $506.00 Up $13.70

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