Daily Gold & Silver Market Report–2/18/2016

Marcey Hollon

2/18/2016 11:14:00 AM

GOLD EASES AS EQUITIES, DOLLAR STRENGTHEN; U.S. JOBLESS CLAIMS FALL

Gold prices have slowed Thursday morning as equities experience a rally, though continued U.S. economic worries have kept the metal above the $1,200 per ounce mark. Dramatic losses in oil helped Gold hit a 12-month high last week to $1,260.60 per ounce. "$1,260 was too high an increase in a short period of time. Gold was overbought," LBBW analyst Thorsten Proettel said. "What we've now seen is a consolidation. I would expect the Gold price (retreat) to go deeper. After that Gold can move to higher regions, but right now we need to let this consolidation pass." Recent market volatility has the Federal Reserve in a bind on whether or not to continue raising interest rates. The Fed expects to raise rates but is divided over deciphering the market volatility.

While concerns over the financial markets are front and center, the labor market continues to show improvement and stability, keeping another interest rate increase possible for this year.  The central bank closely monitors the number of new unemployment applications as a key factor in making decisions on the economy and those numbers have been better than expected. "The economy is better than the markets think. We wouldn't rule out another rate hike at the March meeting as financial market turbulence fades away and the economic outlook remains positive," Chris Rupkey, chief economist at MUFG Union Bank in New York, said.

 

At 12:13  P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,223.00 Up $9.70
• Silver, $15.47 Up $0.05
• Platinum, $944.40 Down $5.30
• Palladium, $504.90 Down $11.90

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.