Daily Gold & Silver Market Report – 8/11/2016
Marcey Hollon
8/11/2016 2:22:00 PM
GOLD CLIMBS BACK ABOVE $1,350 AS DOLLAR HIKE SLOWS ; U.S. LABOR MARKET STRENGTHENING WHILE INFLATION REMAINS STAGNANT
Concerns over U.S. monetary policies continue and have the dollar giving up some gains against other currencies. Gold climbed back above the $1,350 per ounce Thursday morning. A key factor in Gold prices continues to be when, and if, the Federal Reserve will implement another interest rate increase this year. "The most important factor for the Gold market is what's going on in the United States with the economy, and what the Fed will do out of this data," LBBW analyst Thorsten Proettel said. "Anything that is good for the economy in the United States will lead to higher interest rates at some time in the future, and that's bad for Gold -- and the other way around." If the U.S. economic data remains positive, many investors expect the Fed will raise rates by end of year.
The labor market continues to show its health with another week of falling claims for unemployment benefits. More economic data showed a drop in petroleum prices and a jump in import prices for July but the strength of the dollar is expected to fend off underlying inflation. "The data remain consistent with a still-strong trend in employment growth, which means the backdrop for consumer spending remains favorable," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York. The strong labor market is helping consumer spending and analysts believe will further help stabilize the economy.
At 3:20 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,339.30 Down $9.20
- Silver, $20.02 Down $0.21
- Platinum, $1,143.80 Down $36.30
- Palladium,$691.50 Down $35.90
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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
