Daily Gold & Silver Market Report – 3/24/2016

Marcey Hollon

3/24/2016 4:45:00 PM

GOLD ON TRACK FOR BIGGEST LOSS IN FOUR MONTHS; OIL SLIDES ON STRONG DOLLAR

The possibility for more interest rate increases from the Federal Reserve in 2016 boosted the dollar and handed Gold its biggest loss since November. Gold dropped 0.6 percent in early Thursday trading, its weakest since February 26. Investors remain on guard as an interest rate increase could come as early as April.  "In February there were a lot of concerns about a dovish stance from the Fed, while economists are now starting to figure that there could be two (rate rises) and that would mean some pressure on Gold," ING Bank senior strategist Hamza Khan said.  The labor market continues to show healthy signs, which has more than one Fed official calling for a rate hike sooner than later.

A stronger dollar as well as record stockpiles helped oil fall below $40 per barrel, its first weekly loss in the last month. Many analysts think the oil rally of the past few weeks will not be sustained as U.S. stockpiles are at record levels. "A dose of reality (has) derailed the current perception (of a) rally, at least for the time being," New York's Energy Management Institute analyst Dominick Chirichella said. Some investors think oil has another two years to deal with the oversupply issue as major producers are trying to cut back on production. Volumes are slim in advance of the holiday weekend break.

 

At 5:50 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,218.90 Down $7.30
• Silver, $15.26 Down $0.07
• Platinum, $949.00 Down $11.80
• Palladium, $575.70 Down $8.40

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