Daily Gold & Silver Market Report – 9/15/2016
Marcey Hollon
9/15/2016 2:23:00 PM
GOLD SLIPS ON STEADIER DOLLAR AHEAD OF FED MEETING; U.S. RETAIL SALES DIM FED SEPTEMBER RATE HIKE PROSPECTS
The U.S. Federal Reserve’s next policy meeting is set for September 20-21 and investors await clues to the policymakers’ next move. The dollar edged upward Thursday as demand for Gold slipped slightly. Speculation for a September rate hike remains low but the possibility of a hike before year’s end is still on the table. As Gold is highly sensitive to increasing rates, a stronger dollar makes Gold more expensive for investors holding other currencies. "The Gold market is on the defensive. It has remained under pressure despite the clear and marked reduction in market expectations of a U.S. rate hike later this month," HSBC said in a note. "The U.S. yield curve traded to its steepest in two months. The drop in yields should have supported Gold more than it did, as arguably the dip in the dollar should have. This implies there is more to Gold’s sluggishness."
Expectations of a September interest rate increase have dimmed as data showed August retail sales fell more than expected. Weak sales of large-ticket items such as automobiles show domestic demand is slowing. Sluggish manufacturing activity combined with a slight slowdown in jobs have dampened speculations of a September rate hike. "With households not buying, manufacturers stopped producing. If the Fed is data dependent, then the next time a hike would likely come is December," Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania, said.
At 2:45 P.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,316.70 Down $8.60
- Silver, $19.07 Up $0.00
- Platinum, $1,034.50 Down $6.40
- Palladium,$658.90 Up $1.40
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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
