Daily Gold & Silver Market Report – 8/25/2016

Marcey Hollon

8/25/2016 10:38:00 AM

GOLD SLIPS TO 4-WEEK LOW AWAITING FED POLICY; U.S. JOBLESS CLAIMS FALL

Central bankers are gathered for the annual Economic Policy Symposium in Jackson Hole, WY this week as investors await Federal Reserve Chair Janet Yellen’s speech Friday, hoping for clues to when the Fed will increase interest rates. Positive U.S. data along with expectations of a rate hike has Gold slipping to a four-week low. "Initial jobless claims were a good sign," Natixis analyst Bernard Dahdah said. "The chance of a rate hike happening in September is still relatively low, at 32 percent, but that's an improvement, compared to where it was. We still hold the position that (a hike) will probably come in December. If they do raise rates in September, that could have a big effect on Gold, in the sense that the market would be taken by surprise."

The U.S. economy was boosted by an unexpected drop in jobless claims as well as new orders for capital goods picking up for a second-straight month. Reports show the unemployment benefits claims dropped again, holding well under the 300,000 mark, a threshold of the health of the jobs market. Likewise, demand for U.S. manufactured goods is a sign sluggish business spending may be easing.   A healthy labor market helps boost consumer spending and analysts expect economic growth to accelerate in the third quarter.

At 11:39 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,325.20 Down $3.90
• Silver, $18.64 Down $0.02
• Platinum, $1,078.60 Down $1.10
• Palladium,$687.70 Up $3.70

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