Daily Gold & Silver Market Report – 8/17/2016

Brandi Brundidge

8/17/2016 10:46:00 AM

FED MINUTES RELEASED TODAY; U.S. ECONOMIC RECESSION FORECAST

Precious Metal prices fell short Wednesday ahead of the minutes from July’s Federal Reserve policy meeting, which are expected to provide indication into when they plan to increase interest rates.  “It is a game of wait-and-see as far the dollar is concerned, and by extension buck-denominated Gold, with traders largely sitting on their hands ahead of the release of the [Federal Open Market Minutes] minutes later on,” Forex.com analyst Fawad Razaqzada said.  It is expected the Fed will wait to hike rates until December during their last yearly policy meeting, which is how they handled the last rate increase in 2015.

Allianz Chief Economic Adviser Mohamed El-Erian spoke with CNBC Wednesday on the U.S. economy and the direction he foresees the nation heading.  El-Erian is pessimistic on current U.S. economic conditions and believes if the powers above the Federal Reserve do not step in, the country could easily move into a recession.  "We as a society fell in love with finance as the engine of growth. Up to 2008, we depended on private finance. Since 2008, we've depended on central banks. We have forgotten what it takes to [grow] an economy in an inclusive manner," El-Erian said.  Like other economists, El-Erian believes quantitative easing and low interest rates have accomplished all they can and now our government needs to step up and create structural reforms. El-Erian recommends three crucial steps to generate strong economic production: Reform the tax code, deal with pockets of over-indebtedness, such as student loans, and launch an infrastructure program for the nation's roads, bridges and transportation systems.

At 11:43 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,347.90 Down $6.30
• Silver, $19.67 Down $0.27
• Platinum, $1,111.60 Down $9.50
• Palladium,$693.00 Down $13.10

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