Daily Gold & Silver Market Report – 6/17/2016
Jennifer Carter
6/17/2016 11:50:00 AM
BREXIT SPECULATION STILL BOOSTING METALS
Spot Gold is up Friday on a softer dollar, heading for its third-straight week of gains as the Federal Reserve is still uncertain of an interest rate increase. Gold saw its highest point since August 2014, hitting $1,315.55 Thursday, before sliding one percent after a lawmaker was killed and the British referendum was suspended for now. "Gold is reverting to its safe-haven role, in a situation where eurozone government bonds are in negative yield territory and investors have fewer safe assets to choose from," Mitsubishi Corp strategist Jonathan Butler said. "The other major piece of news this week has been the Fed's downgrade of GDP growth and its unchanged inflation expectations ... all of these factors are supportive of rates remaining low and ... favorable to Gold."
Stocks followed the dollar and also fell Friday, erasing the rebound seen last session. The Dow Jones Industrial Average slipped 30 points to 17,705, while the S&P 500 fell 3.35 points to 2,074. There is growing support for the “leave” vote in Great Britain, also known as Brexit, which could shift the market into widespread turmoil. Earlier this week, stocks were negatively affected by the Federal Reserve striking a nervous tone about the U.S. economy. “Today is all about not wanting to go home long,” R.W. Baird & Co equity sales trader Mike Antonelli said. “It’s the weekend ahead of the Brexit vote and that seems to be the primary driver of price action. The Fed is now in the past but it did drop a nervous tone on the market. We’re still digesting that.”
At 11:50 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,291.30 Down $6.70
- Silver, $17.41 Down $0.26
- Platinum, $966.40 Down $11.90
- Palladium, $533.20 Down $2.80
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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
