Daily Gold & Silver Market Report–2/15/2016

Paul Stevens

2/15/2016 12:29:00 PM

METALS DOWN AS INVESTOR RISK APPETITE RETURNS

Precious Metal prices are off to a rough start Monday and are down across the board as investors return from the weekend. After reaching a one-year high last week, Gold prices have taken a hit as the dollar, euro and yen all saw small rallies. This is prompting some investors to take advantage of the recent metals selloff while craving riskier assets.  Although metals are down, some analysts believe Gold is still set for another run.  Commerzbank analyst Daniel Briesemann said, “Rate hikes by the [Federal Reserve] are being priced out, while on the other side, the [European Central Bank] will probably announce more [quantitative easing] in early March.  Everyone's trying to weaken their currency, and in such an environment, Gold should be in demand as a safe haven.” 

As markets around the world continue to struggle, central banks will be put back into the spotlight.  The U.S. Federal Reserve’s decision to raise benchmark interest rates at the end of 2015 was seen as a risky move. Most other central banks are considering additional quantitative easing to boost their economies, which could increase Gold’s safe-haven demand.  When speaking about the March 10 European Central Bank meeting, ECB President Mario Draghi said, “First, we will examine the strength of the pass-through of low imported inflation to domestic wage and price formation and to inflation expectations.  He added, “Second, in the light of the recent financial turmoil, we will analyze the state of transmission of our monetary impulses by the financial system and in particular by banks. If either of these two factors entail downward risks to price stability, we will not hesitate to act.”

At 1:30  P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,211.50 Down $30.00
• Silver, $15.42 Down $0.42
• Platinum, $938.60 Down $19.50
• Palladium, $514.20 Down $13.80

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