Daily Gold & Silver Market Report – 3/17/2016
Marcey Hollon
3/17/2016 1:59:17 PM
GOLD CLIMBS ON FED NEWS; S&P 500, DOW UP AS MATERIALS, ENERGY STOCKS GAIN
News of the Federal Reserve reducing the number of forecast interest rate increases this year has Gold up 2.5 percent Thursday. The Fed is now expected to raise rates two more times this year, which is half the number previously expected. "There has been a general tendency for Gold to react in a Pavlovian manner to every announcement from the Federal Reserve, with the price firming on any failure to raise rates, so the initial jump is not too surprising," Glaux Metal consultant David Jollie told the Reuters Global Gold Forum Thursday. "I also think we shouldn't expect too much strength immediately after this announcement, since not that many people thought rates would rise again at this point. The key questions are rather what is going to happen to inflation and when might rates rise later this year."
Materials and energy stocks got a boost from increasing crude oil prices Thursday. The Fed held a dovish tone and left rates unchanged after seeing continued moderate U.S. economic growth and a healthy labor market. "The market is trying to digest exactly what's going on with the Fed," said John Burke, chief executive of Burke Financial Strategies in Iselin, New Jersey. "Two patterns are clear (today) - that healthcare stocks are lagging and crude oil is leading - everything else in between, we're all trying to sort it out." Crude prices gained as the dollar weakened on hopes of major oil producers freezing output.
At 2:57 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,261.00 Up $29.50
- Silver, $16.00 Up $0.73
- Platinum, $985.90 Up $27.20
- Palladium, $595.70 Up $17.20
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
