Daily Gold & Silver Market Report – 3/30/2016
Brandi Brundidge
3/30/2016 10:58:00 AM
EUROPE PROJECTED TO INCREASE GOLD HOLDINGS; INTEREST RATES COULD RISE IN JUNE
European investors could see an unexpected change as Precious Metals experts forecast heavier Gold demand in Europe with negative interest rates, making it less desirable to deposit money into a bank account. "Although Gold is very much driven by U.S. Federal Reserve (Fed) policy, the impact of European Central Bank (ECB) policy decisions may become increasingly relevant for Gold price action, as concerns about negative interest rates gain traction among investors," UBS strategist Joni Teves said in a report this month. In March, the European Central Bank decreased interest rates by 10 basis points to -0.4 percent, meaning commercial banks are essentially being charged to hold customers’ cash. In 2015, only 9 percent of the worldwide consumer demand for Gold came from Europe, with 42 percent from Germany and another 18 percent from France, Italy, Spain and Austria combined, according to Teves.
Federal Reserve Chair Janet Yellen spoke Tuesday at the Economic Club of New York to address the U.S. economy’s current condition. Yellen focused heavily on global conditions as both the ECB and Japan have enforced negative interest rates. There had been speculation of an interest rate hike at the next Fed policy meeting, on April 26, until Yellen shared pessimistic global views Tuesday. However, Chicago Fed President Charles Evans told CNBC Wednesday he believes the next rate hike will occur in June. Evans’ prediction makes sense as Yellen set up a news briefing after June’s policy statement, but hasn’t scheduled one for the April or May policy meetings.
At 12:00 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,227.60 Down $10.40
- Silver, $15.28 Down $0.01
- Platinum, $968.90 Up $1.90
- Palladium, $570.00 Down $4.30
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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
