Daily Gold & Silver Market Report – 6/7/2016

Paul Stevens

6/7/2016 11:18:24 AM

METALS LOOK FOR DIRECTION AHEAD OF NEXT FED MEETING

Precious Metal prices are relatively flat during early Tuesday afternoon trading hours.  After reaching a two-week high Monday, comments from U.S. Federal Reserve Chair Janet Yellen on the strength of the U.S. economy pressured prices.  Although Yellen’s comments dampened investor appeal, some analysts believe Gold has more growth ahead.  ICBC Standard Bank analyst Tom Kendall said, “There doesn't seem to be any reason to sell Gold over the next few weeks.  The main reason feeds back into the fact the U.S. dollar is going to be traveling lower because the probability of an imminent U.S. rate increase has decreased and because the U.S. economy is not growing as strongly as people thought.”

Although stocks are up slightly Tuesday, U.S. Treasury yields are on the way down.  Friday’s disappointing jobs report indicated growth in May reached its lowest point in six years, prompting strategists to reassess things. Prudential Fixed Income Chief Investment Strategist Robert Tipp said, “[Yellen’s] comments went from hiking rates in the next few meetings in a previous speech to instead talking about the need for confirmation. With the prospect of [rate hikes] being pushed off at least for a couple months, if not longer, it creates a reassessment of where U.S. yields are supposed to be.”

At 12:17 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,244.50 Down $2.90
• Silver, $16.44 Down $0.07
• Platinum, $999.40 Up $2.90
• Palladium, $552.80 Down $5.20

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