Daily Gold & Silver Market Report – 10/27/2016

Marcey Hollon

10/27/2016 10:48:00 AM

GOLD INCHES HIGHER, MARKET SEEKS INTEREST RATE DIRECTION; U.S. SPENDING TEPID, LABOR MARKET FIRMING

Investors continue to expect an interest rate increase from the Federal Reserve but the timing remains the biggest question. Gold is viewed as a safe haven during times of economic turmoil and political uncertainty but is also sensitive to rate hikes, which boost the U.S. dollar in which it is priced. "Trading is really tight. We are in a wait-and-see mode until the next Fed meeting or U.S. elections. We are probably going to trade like this until something substantial happens,"  Capital Economics commodities economist Simona Gambarini said. Physical demand for Gold is getting a boost from India, the world’s second largest Gold consumer, as they hold Diwali and Dhanteras festivals where Gold is given as a gift.

Expectations of a fourth-quarter acceleration in business spending have been dampened by weak demand for electronic products and computers. September saw fewer-than-expected orders for core capital goods after three months of strong gains. "This is a bit of a discouraging handoff to the fourth quarter. There is a reluctance to boost capex (capital expenditure) meaningfully," BMO Capital Markets Senior Economist Jennifer Lee said. Other economic data showed the labor market firming as the number of Americans applying for unemployment benefits dropped again last week.

 

At 11:47 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,272.00 Up $3.70
• Silver, $17.70 Up $0.02
• Platinum, $965.60 Up $0.60
• Palladium,$616.50 Down $6.40

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.