Daily Gold & Silver Market Report – 5/26/2016
Marcey Hollon
5/26/2016 2:04:00 PM
GOLD UP AS DOLLAR EXTENDS LOSSES; WALL STREET LOWER AS MATERIAL STOCKS FALL
Gold was up slightly Thursday as economic data showed strong demand for U.S. manufacturing goods in April. Investors continue to watch for the next Federal Reserve interest rate increase, with a hike possible in June. "Gold has entered a phase of consolidation due to stronger views that the U.S. Fed will raise rates this summer," ActivTrades chief analyst Carlo Alberto de Casa said. "Today we are just seeing a technical rebound after the metal touched $1,217 [per ounce] yesterday, where the next chart support stands." Speculation of a rate increase as well as the dollar gaining strength have held Gold down 5 percent for May.
Wildfires in Canada and geopolitical tensions in Nigeria and Libya helped oil prices rally and helped curtail the oil glut in the marketplace. Despite the small oil rally, Wall Street opened lower as material stocks were down and oil struggled to stay above $50 per barrel. "The global surplus still exists and there is still a possibility that oil prices could retrace further," Dominick Chirichella, senior partner at the Energy Management Institute in New York, said. More economic data released Thursday showed durable goods rose in April, however business spending remains weak. The manufacturing sector has been struggling and accounts for 12 percent of the economy. The Federal Reserve remains positive over the somewhat upbeat data, leaving many to think a rate hike is on the horizon.
At 3:03 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,222.00 Down $4.10
- Silver, $16.39 Up $0.08
- Platinum, $994.20 Down $0.60
- Palladium, $543.90 Up $12.00
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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
