Daily Gold & Silver Market Report – 5/20/2016
Jennifer Carter
5/20/2016 9:51:00 AM
Spot Gold is up Friday morning to $1,259.20 per ounce after closing Thursday at a three-week low. The drop was caused by speculation the Federal Reserve will raise interest rates next month. Higher interest rates would boost the U.S. dollar and affect interest in Precious Metals. The market has rebounded slightly because not everyone thinks the Fed is ready to move. “I don’t believe the Fed even believes what they say anymore, so I’d be shocked to see a rate hike in June,” Libertas Wealth Management Group President and Portfolio Manager Adam Koos said. “There is too much risk in the equity marketplace and falling earnings ahead of price movement has stock bulls losing their religion to the church of Gold. This year alone, the Investment Company Institute has reported an outflow of almost $48 million in equity funds, and at least some of this money is finding its way to the metals market.”
The U.S. stock market is up as well Friday on the potential increase by the Fed. Oil was marginally up and hovered near a six-month high. The rising oil prices could help further boost the stock market. "If you look at stocks that have a really long track record of dividend growth, you've got about 50, 60 names in the S&P 500, but on average they've shown up with growth. And they're a little expensive, but not much compared to the rest of the market, and not much compared to their history," Proshares Advisors Head of Investment Strategy Simeon Hyman told CNBC's "Squawk Box."
At 9:51 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,257.70 Up $1.80
- Silver, $16.62 Up $0.11
- Platinum, $1025.50 Up $12.70
- Palladium, $556.50 Up $7.00
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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
