Daily Gold & Silver Market Report – 7/21/2016
Marcey Hollon
7/21/2016 12:12:00 PM
GOLD HOLDS ABOVE 3-WEEK LOW AS ECB LEAVES RATES UNCHANGED; WALL STREET FLAT AS INVESTORS DIGEST EARNINGS REPORTS
Gold held steady above its recent low as Thursday the European Central Bank (ECB) left interest rates at record lows in hopes of helping its economy. ECB President Mario Draghi said the bank will take more actions to help economic growth if necessary. Analysts are expecting more quantitative easing by the central bank and all eyes will be on the September meeting. Similarly, analysts are watching future U.S. Federal Reserve meetings, as two increase rate hikes are expected this year. Gold is sensitive to an increase in rates, which increase the holding costs of non-yielding bullion. "The chief factor impacting Gold is the Fed's decision about an interest rate hike," ThinkMarkets Chief Analyst Naeem Aslam said. "Recent data and ... earnings season have stimulated speculation that another rate hike is back on the table and the odds of such will go even higher if the non-farm payrolls next month print another robust number."
A record-setting run on Wall Street has slowed as investors decipher new economic data and earnings reports. The better-than-expected data showed jobless claims fell while existing home sales showed an unexpected jump in June, rising at their fastest rate in more than nine years. "The recent rally has been more shallow and has been confined to a few sectors," Wunderlich Securities chief market strategist Art Hogan said. "Any pullback was to be expected given that the Dow [Jones Industrial Average] rallied for nine straight days and you have to see today's action in that context. The broader macro context hasn't changed."
At 1:11 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,332.10 Up $10.60
- Silver, $19.79 Up $0.16
- Platinum, $1,104.80 Up $15.30
- Palladium, $668.00 Up $9.00
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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
