Silver Prices Snapped Back

Cassie Bastien

3/6/2017 10:16:47 AM

Daily Gold & Silver Market Report – 03/06/2017

As the stock market steadied following Thursday's 4 percent plunge, which shaved $2 billion from the futures market, Silver prices regained momentum early Monday morning. Despite last week’s decline that pushed the gray metal into negative territory after nearly two months of solid increases, Economic Calendar’s financial market analyst Sam Bourgi noted, “Precious Metals remain in a firm uptrend that extends all the way back to December.” So what caused this rally? As Bourgi said, “a combination of technical trading and risk aversion in the financial markets.” Also, as traders begin to calculate in a March interest rate increase, the dollar soared to highs against other major currencies last week. However, markets await further indications regarding the health of the domestic economy, causing little movement Monday in the U.S. dollar.

• Silver for May delivery rose 0.8 percent to $17.88 per ounce at 7:50 a.m. (ET).
• Federal Funds futures prices imply an 80 percent likelihood of a rate hike next week after a parade of Federal Reserve speakers raised expectations of an imminent shift in policy (EconomicCalendar.com).

Gold Limited by Interest Rate Hike Outlooks

Along with other safe-haven assets, Precious Metals saw higher demand early Monday after talk of rate hikes moved the dollar. Market Watch News Editor Rachel Koning Beals said, “North Korean sabre-rattling, China’s trimmed GDP estimate, U.S. President Donald Trump accusing Obama of pre-election wiretapping and the persistence of troubled French presidential candidate Francois Fillon fueling political uncertainty there all combined to largely push down the greenback and bring at least a short-term bid for Gold, even as the prospect for higher U.S. interest rates kept the metal’s gains in check.” Mihir Kapadia, CEO of Sun Global Investments, said, “Such geopolitical mayhem expands the interest for safe-haven assets such as Gold.” Although the market has basically priced in a March rate hike, Commerzbank commodities analyst Carsten Fritsch said, “[Federal Reserve Chair Janet] Yellen also made it clear that the forthcoming increase should not be misinterpreted as signaling a generally faster cycle of rate hikes. ... [Yellen's speech was] enough to prompt ten tons of Gold to be withdrawn from the Gold ETFs on Friday.”

Millennials Avoid the Word ‘Invest’

According to the Colorado State University students who won Saturday’s DisCOver Challenge, an intercollegiate business competition sponsored by Fidelity Labs, found if you avoid words like “invest,” millennial-aged customers are more likely to save money for retirement. Team Business For Good instead used the phrase “stash your cash” and received far higher engagement from their young target audience. “Investing is boring,” said Everett Montano from DisCOver Challenge's Team Tres Comas at the Air Force Academy, who wants to literally turn the dreaded term “investing” into a game. Their hopes are to have millennials invest their money into something more long term, such as a retirement or savings account, instead of video games.

At 11:16 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,229.70 Up $1.00
• Silver, $17.84 Up $0.05
• Platinum, $982.40 Down $12.70
• Palladium, $768.10 Down $1.10

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