Daily Gold & Silver Market Report – 5/27/2016
Jennifer Carter
5/27/2016 10:55:00 AM
GOLD,OIL DOWN SLIGHTLY; AWAITS FED DECISION
Gold is at an eight-week low Friday, seeing its fourth-straight weekly decline as inventors speculate the Federal Reserve will again raise interest rates, which would dampen metal demand and boost the U.S. dollar. This view has been supported by the central bank, which will meet Friday. Spot Gold was at $1,215.39 per ounce at 1340 GMT, little changed from late Thursday. "Expectations for summer rate hikes from the Fed have changed over the past couple of weeks, and looking at that, combined with the dollar being off its lows, equities near the highs, and yields higher, it's a warranted move in Gold," UBS analyst Joni Teves said. "That's especially as you're coming from quite a big build-up in positioning. Last week's [Commodities Futures Trading Commission] data showed that net longs were around 98 percent of the record high."
Oil prices are down slightly Friday, but some expect the two-month upward trend to continue. Supplies have declined about one million barrels per day following some unexpected outages. "The damage we are doing to the non-OPEC supplies is tremendous at this point in time … It is mainly because of all these unplanned outages — Nigeria, in particular, where we are losing nearly 700,000 barrels per day. But even if these unplanned outages do get resolved — unlikely at this stage — the underlying damage to the supply side is tremendous," Energy Aspects co-founder and chief oil analyst Amrita Sen told CNBC Friday. Oil prices recently declined to $49 per barrel and investors want to see prices increase slowly since inventory is high.
At 3:03 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,214.90 Down $7.80
- Silver, $16.29 Down $0.10
- Platinum, $983.80 Down $12.00
- Palladium, $544.60 Up $0.00
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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
