Trump Rally Gives Way to Caution As Yellen Testimony Looms

Cassie Bastien

2/14/2017 9:54:24 AM

Daily Gold & Silver Market Report – 02/14/2017

Federal Reserve Chair Janet Yellen is scheduled to give her semi-annual testimony Tuesday, where she is expected to give clues to when the next U.S. interest rate increase will occur. Caution set in ahead of her remarks, flatlining stock and dropping the U.S. dollar. Reuters reporter Dhara Ranasinghe said, “The prospect of [President Donald] Trump-led economic stimulus in the United States has underpinned the dollar and stocks in recent days, powering U.S. equity markets to record highs on Monday and helping Asian shares to hit 19-month peaks on Tuesday.” However, the somewhat “buoyant mood” in global markets was strengthened as investors focus on Yellen’s testimony, which “could highlight the likelihood of two or more U.S. interest rate hikes this year,” Ranasinghe reports.

Silver Price News Supports Our Bullish 2017 Forecast

Resource Specialist Peter Krauth with Money Morning said the big news for Silver so far in 2017 has been its outperformance of Gold. Krauth said over the same period, Silver prices gained 13.8 percent while Gold prices climbed 8.8 percent. Even with future movements in the U.S. dollar, investors are bullish on the price of Silver in 2017. Krauth said, “That's because the 200-day moving average and Gold/Silver ratio have been acting in a way that points to a continued rally this year,” acting as overhead resistance. He feels these pullbacks are short term and fundamentally important for a long-term rise this year.

UBS Expects Gold Price Rally

It seems the election of President Donald Trump has hurt the price of Gold. UBS Head of Commodities Dominic Schnider expects Gold to rise to $1,300 per ounce from its current around $1,230 per ounce. FINews.com reports, “Part of the reason behind the expected increase in the Gold price is a bet against the policies of Donald Trump, [Schnider] told CNBC.” Although the yellow metal plunged after the president election, Gold has since recovered and is up 7 percent since the beginning of 2017. UBS believes the rally is not going to stop anytime soon. According to Schnider, the main reason for the expected increase is merely uncertainty.

• Swiss bank UBS urges investors to keep their nerves.
• Schnider expects the Fed to delay the rate of inflation, which he said is good for the price of Gold.

At 10:54 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,225.10 Down $1.90
• Silver, $17.88 Down $0.03
• Platinum, $999.40 Up $0.10
• Palladium, $782.80 Up $0.80

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.