Daily Gold & Silver Market Report – 3/31/2016

Marcey Hollon

3/31/2016 4:25:00 PM

GOLD HEADS FOR BIGGEST QUARTERLY RISE IN NEARLY 30 YEARS; U.S. JOBS MARKET FIRMING, MANUFACTURING REGAINING FOOTING

Expectations of an interest rate increase have eased for now and have helped spot Gold rise 1 percent Thursday as the dollar hit a five month low against the euro. Comments from Fed Chair Janet Yellen on Tuesday that the central bank should proceed cautiously in increasing rates gave Gold another chance to rally. "Investors are waiting to push gold higher, they just need to have a good reason for it," ABN Amro analyst Georgette Boele said.

"It could very well be the payrolls tomorrow. As they've been at a very high level for quite a long time, if we get a little bit of weakness, we have another reason (to rise)." All eyes will be watching for the non-farm payroll report due out Friday to check the health of the economy. A combination of concerns over bruised equities , global growth and strength of the U.S. economy handed Gold its largest quarterly rise since 1986.

While the labor market continues to maintain its momentum, data shows its growth has not been coupled with wage growth. The U.S. central bank is watching not only the labor market but wage growth and global markets as factors as to when to increase interest rates. "Claims remain at a level that is consistent with low rates of involuntary job separation and this report, similar to other labor market-related releases for March, points to no significant shift in labor market trends at the end of the first quarter," said John Ryding, chief economist at RDQ Economics in New York. Data showed the manufacturing index gained 6 points for a reading of 53.6 as new orders increased. A number over 50 is viewed as expansion in activity. Lower oil prices and a strong dollar have beaten up on the manufacturing sector, which accounts for 12 percent of the U.S. economy.  Analysts think the worst of the manufacturing battle is coming to an end.

 

At 5:25 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,235.20 Up $5.90
• Silver, $15.51 Up $0.24
• Platinum, $977.20 Up $11.00
• Palladium, $565.30 Down $2.10

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