Daily Gold & Silver Market Report – 6/29/2016
Brandi Brundidge
6/30/2016 7:54:00 AM
SILVER SOARS 3 PERCENT; U.S. STOCK MARKET APPEARS GLOOMY
Precious Metals climbed Wednesday, with Gold nearing a two-year high and Silver jumping almost 3 percent for the day. The big move was due to a weaker U.S. dollar on uncertainty surrounding how the Federal Reserve will proceed with hiking interest rates in the near future. “[As] soon the Article 50 [EU leave rule] is triggered, it will be official that the U.K. is out [of the European Union] and it may push volatility higher,” ThinkForex Chief Market Analyst Naeem Aslam said. “The increase in the volatility could support the Gold price further and the negotiation process between the U.K. and the EU will be full with turbulence.” More recently, investors have switched their focus from Gold to Silver. “Silver is like Gold on steroids when it gets going due to the very small size of the physical Silver market versus stock, bond and even the Gold market,” Mark O’Byrne, research director at GoldCore in Dublin, said. “Silver looks very bullish now and our clients are allocating to it in a big way.”
In 2015, analysts forecast U.S. stocks would underperform in 2016, which occurred at the beginning of the year and looks to be continuing through summertime. Deutsche Bank Chief U.S. Equity Strategist David Bianco told CNBC's "Squawk Box” Wednesday the U.S. stock market could see "significant downside risk" with uncertainty surrounding the Fed’s decision to increase interest rates. "I am very concerned about the market for this summer. ... I think the S&P 500 likely falls to something like 1,950, perhaps lower," Bianco said. The biggest downfall for the U.S. stock market came from last week’s Brexit outcome, which created uncertainty within investors.
At 5:39 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,321.50 Up $3.90
- Silver, $18.37 Up $0.49
- Platinum, $1011.50 Up $31.90
- Palladium, $590.50 Up $19.10
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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
