Daily Gold & Silver Market Report – 6/8/2016
Brandi Brundidge
6/8/2016 10:42:00 AM
SILVER FORECAST TO REACH $20 BY END OF YEAR; U.S. DOLLAR DECLINES
Precious Metals prices soared Wednesday as the market foresees the Federal Reserve not increasing interest rates in June or July, due to recent economic data. The expectation of the Fed skipping a few months of hiking rates along with the weakening U.S. dollar provided strong support for metal prices. “The technical picture for Gold is looking so much better in the last few days, posting higher lows and higher highs, which shows much more support underneath the market,” said Jeffrey Nichols, senior economic adviser at Rosland Capital. Investors who study chart patterns in assets realize when Precious Metals reach higher lows and higher highs, it indicates the asset has positive momentum. Silver is having a remarkable run as well, with the possibility of reaching $20 an ounce by the end of 2016, according to commodity specialist Peter Krauth.
The U.S. dollar fell to its lowest point in a month Wednesday, as crude oil rose to its highest level in almost a year. Analysts suggest the reason for the U.S. dollar’s dramatic loss is due to the May jobs report released last Friday, showing job growth falling to its lowest level in more than six years. Adam Cole, head of G-10 currency strategy at RBC Capital Markets, made a great point in regards to upcoming July payroll numbers, saying, “That’s really make or break given that we’ve had one soft payrolls release and one very soft payrolls release. Three would make a trend.” There is already speculation the Fed will not increase rates in June or July. If job growth continues to deteriorate in July and the Fed moves forward as planned with two rate hikes, it would be alarming.
At 11:40 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,264.40 Up $17.40
- Silver, $17.13 Up $0.68
- Platinum, $1017.30 Up $17.90
- Palladium, $565.50 Up $12.30
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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
