Daily Gold & Silver Market Report – 4/28/2016

Marcey Hollon

4/28/2016 10:24:00 AM

GOLD CLIMBS AFTER FED, BOJ STAND PAT; U.S. ECONOMY STALLS IN FIRST QUARTER

A slowdown in the U.S. economy has left the Federal Reserve pressing pause on raising rates at this time. The Japanese yen received a boost against the dollar as the Bank of Japan surprised the market and  held its monetary policy steady. Gold was able to gain 1 percent on the combined economic news and has rallied 17 percent this year on expectations of the Fed not being aggressive on rates. "The longer the Fed holds off on raising rates, the better for Gold," HSBC said in a note. "The bullion market will now focus on the prospects of a Fed hike at the next meeting in June, and the possibility that the Fed will tighten later this year may help cap bullion prices."

Weak consumer spending in the first quarter reduced U.S. economic growth to its slowest rate in the past two years, causing policymakers to leave rates unchanged. "Although growth was weak to start the year, the soggy results are consistent with seasonal trends over the past decade. Expectations for growth for the remainder of the year remain bright," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan. Cheap oil and a sustained strain on the energy sector held pressure on business spending. Analysts are optimistic exports will rebound.

 

At 11:23 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,265.30 Up $14.20
• Silver, $17.53 Up $0.17
• Platinum, $1043.80 Up $18.90
• Palladium, $622.30Up $11.60

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