Daily Gold & Silver Market Report – 4/7/2016

Marcey Hollon

4/7/2016 11:34:00 AM

GOLD GAINS AS FED REMAINS CAUTIOUS; WALL STREET SLIPS ON GLOBAL CONCERNS

Policymakers maintained a cautious course regarding increasing interest rates, according to minutes from the Federal Reserve’s March meeting. Gold was able to gain two percent Thursday as global shares dropped and the U.S. dollar hit a new low against the Japanese yen, which led investors to seek safe-haven assets.  The Precious Metal rallied 16 percent in March yet gave up overall gains on hawkish comments from the Fed.  "The Fed's minutes yesterday and the dollar's weakness have created an environment that gives Gold an additional push and attract some pent-up demand," Saxo Bank senior manager Ole Hansen said. "The most immediate resistance is $1,244 [per ounce] but a break above $1,255 could suggest a new high in the market." 

Thursday saw Wall Street open lower as investors worry over increasing interest rates as well as weakness in global growth. The central bank’s handling of sluggish global growth is a concern for the timing of the next interest rate increase. The Fed’s cautionary tone has pressured the dollar, pushing investors toward the Japanese yen for safety.  Investors expect two rate hikes in 2016 but have not ruled out a third before year’s end. "I suspect that what we're seeing here is a little market jitters due to the fact that the dollar continues to weaken," Peter Cardillo, chief market economist at First Standard Financial in New York, said. "I think we will just stay in a mixed-to-holding pattern for the next day or two until the earnings season begins to move into full gear next week."

 

At 12:33 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,240.80 Up $16.00
• Silver, $15.32 Up  $0.21
• Platinum, $955.90 Up $11.20
• Palladium, $535.30 Down $3.70

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