Daily Gold & Silver Market Report – 5/19/2016
Marcey Hollon
5/19/2016 4:22:00 PM
GOLD SLIDES TO THREE-WEEK LOW AS STOCKS WEAKEN, DOLLAR GAINS ON FED HIKE TALK
Minutes from the U.S. Federal Reserve’s April meeting point toward a possible interest rate increase next month. Recent positive economic data strengthened the dollar and handed Gold a one percent loss. "All commodities are getting hammered -- Silver is down 3 percent, oil down more than 2 percent," Commerzbank analyst Carsten Fritsch said. "It seems that a lot of speculative investments are being unwound, with the stronger U.S. dollar as excuse." Volatility in global markets has had the Federal Reserve holding off on another rate hike, although recent data suggests interest rates may increase sooner than later.
A strong dollar had stocks selling off and investors preparing for a possible interest rate increase in the near term. Minutes from the April Fed meeting left the possibility on the table for a rate hike in the near future. The Federal Reserve has been watching market conditions as well as economic data for the next opportunity to raise rates. "The Fed seems to think the economy is quite a bit stronger than some market pundits and maybe investors in general think," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland. "Not only is there the concern that they will, in fact, do damage to the economy, but also one more step in removing the easy money that clearly has been a benefit for rising asset prices over the last few years." Markets continued to react to the Fed minutes throughout the day.
At 5:19 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,256.80 Down $18.70
- Silver, $16.54 Down $0.62
- Platinum, $1016.50 Down $25.50
- Palladium, $560.00 Down $20.60
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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
