Daily Gold & Silver Market Report – 7/20/2016
Brandi Brundidge
7/20/2016 2:40:00 PM
FED IS FORECAST TO HIKE RATES BY YEAR’S END; U.S. GROWTH PREDICTED
Gold and Silver are pressured by a stronger U.S. dollar Wednesday due to anticipation of the Federal Reserve possibly increasing interest rates by year’s end. The Fed has four scheduled policy meetings left in 2016 and have stated their plans to hike rates at least two times this year. They originally planned to raise rates four times in 2016, but due to poor economic conditions, they changed this forecast to two and have so far failed to raise rates this year. Speculation they might raise interest rates has supported the U.S. dollar and weighed down Precious Metals. “The economic data in the U.S. is supporting the argument that another rate hike could be a possibility by the end of this year and this is fueling the dollar rally,” ThinkForex UK Ltd. Chief Market Analyst Naeem Aslam said.
The U.S. dollar reached its highest point since June Wednesday on hopes the Fed will raise interest rates this year. “There’s certainly a growing crowd of investors that are warming up to the notion that the abundance of strong U.S. economic data may light a fire under the Fed and lead to a surprise rate hike by year-end,” Stephen Innes, a senior trader at Oanda Corp. in Singapore, said in an emailed note. The U.S. economy is expected to grow by 2.2 percent this year, according to the International Monetary Fund’s quarterly World Economic Outlook released Tuesday, though they removed their forecast for an increase in global growth due to the recent Brexit event.
At 3:40 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,317.10 Down $17.40
- Silver, $19.50 Down $0.52
- Platinum, $1,087.70 Down $8.90
- Palladium, $675.00 Up $17.10
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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
