Uncertainty for Gold Bulls

Cassie Bastien

2/28/2017 11:17:08 AM

Daily Gold & Silver Market Report – 02/28/2017

Gold spot prices could be in danger depending on what President Donald Trump discusses in Tuesday's address to Congress regarding higher interest rates, potentially causing the dollar to rally. Although many investors want President Trump to provide more details regarding his economic stimulus plans, Henry Sanderson with Financial Times says, “Gold bulls will be betting that the uncertainty over exactly what the White House will deliver is going to persist.”

• The SPDR Gold Shares, the largest Gold-backed exchange-traded fund,has seen $1.5 billion in inflows so far in February.

Market Never Cares about Silver Supply Deficit

Seeking Alpha reporter Ron Struthers says “now is the time to buy [Silver],” but the real question is why now? After reviewing many charts and numbers, Struthers conludes Silver prices want to challenge the 2016 high of $20.50 per ounce. Struthers believes the most important factor with the gray metal is industrial fabrication, representing around 60 percent of total demand. Something else to keep in mind is the high demand for solar cells such as electrical and thermal conductivity driven by utilities. Although nothing is certain, you can’t beat hard facts, and those facts indicate investors should buy now while the price of Silver is still low.

• Growth in solar panel demand is set to at least double in the coming years.
• Current ETF trends are reporting that SLV is poised to make it six-straight months of outflows (SeekingAlpha.com).

Economic Concerns Impact Precious Metals

When it comes to Precious Metals, the U.S. economy isn’t the only concern, as Brexit made huge impacts in 2016 supporting both Precious Metals and Britain’s economy. Overall, emotions concerning a delay in possible U.S. interest rate hikes are playing a huge role on the Precious Metals market. Reporter Meera Shawn with Market Realist said, “The sentiment of these Federal Reserve officials in increasing interest rates sooner rather than later could cause a slump in Precious Metals.” As other economic assets become uncertain, the more demand there is for Gold and Silver. Still, Shawn says, “equity markets play significant roles in determining the direction that Precious Metals can take.”

At 12:16 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,258.60 Down $1.90
• Silver, $18.52 Up $0.06
• Platinum, $1,035.30 Down $3.60
• Palladium, $779.60 Down $6.90

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