Daily Gold & Silver Market Report – 7/28/2016

Marcey Hollon

7/28/2016 11:17:00 AM

GOLD FIRMS AFTER NO RATE RISE SIGNAL; U.S. LABOR MARKET STILL STRONG

The Federal Reserve left rates unchanged following their meeting Wednesday, though they insist an interest rate increase will happen this year. Gold rallied to a two-year high following Brexit and could see another bump if interest rates are increased. "The Gold price reacted quite positively to the news that there was no rate hike, and that a September rate hike is not certain," Capital Economics analyst Simona Gambarini said. "But this is probably short-term volatility. We are quite hawkish on the Fed policy for this year and next. The Fed is running out of excuses to not hike rates." Platinum and Palladium also reached new highs in the wake of the Brexit vote.

While the number of jobless claims rose last week, the strength of the labor market remains strong. Jobless claims numbers have stayed below the 300,000 threshold for 73 consecutive weeks, signaling a healthy labor market. June saw 287,000 jobs added, the largest number this year. Investors will watch for the Commerce Department’s second-quarter gross domestic product report, due Friday, and expect an increase over the first quarter’s numbers. The strength of the economy remains a main factor with the Federal Reserve and any possible interest rate increase.

 

At 12:15 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,336.10 Up $6.00
• Silver, $20.22 Up $0.22
• Platinum, $1,135.90 Up $10.70
• Palladium,$700.00 Down $4.90

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