Silver Prices Looking to Continue Losses

Cassie Bastien

3/7/2017 10:38:38 AM

Daily Gold & Silver Market Report – 03/07/2017

Market Analyst Paul Robinson with DailyFX said Silver prices are “on the verge of breaking an important trend-line rising up from the December low.” Although the gray metal did bounce for a day, momentum from recent news of a mid-March interest rate hike carried the metal lower. Robinson said, “If Silver makes an attempt to break the December trend-line, but fails to hold below on a daily closing basis, then either further losses will be put on hold for a short while or a turn higher could develop.” However, that would require much work for Precious Metals to turn the decline around.

The Perfect Storm for Gold Prices

In December, Carter Worth of Cornerstone Macro said Gold prices would be on the rise and his predictions are coming true. Since his contrarian call, CNBC Associate Producer Annie Pei said, “Gold has rallied 8 percent, driving the Dold-tracking ETF GLD up by the same amount.” However, with everything happening within the market, including a March rate hike and the U.S. dollar increasing, Gold has actually dropped approximately 2 percent. On CNBC's "Options Action," Worth said, "This is just the beginning of a period of further weightness."

Stocks Retreat as Dollar Advances

Federal Reserve Chair Janet Yellen caused ripples throughout the markets, with U.S. stocks and Treasuries slipping and the dollar advancing. Bloomberg reporter Jeremy Herron said, “JPMorgan Chase & Co. warned that hawkish Fed rhetoric has increased the likelihood for a short-term pullback after stocks reached records last week. ... A surge in corporate bond issuance pushed up Treasury yields,” helping dollar rise. Markets seem to be coming off recent spikes “as investors price in a near-certain March U.S. interest rate increase by the Federal Reserve,” Herron noted.

• Gold pares gain, while crude slips to lead commodities lower.
• The S&P 500 declined 0.3 percent to 2,375.45 at 4 p.m. in New York, paring a loss that reached 0.6 percent at its lowest in the morning.
• Ten of 11 S&P 500 groups retreated, led by materials producers and lenders.
• The Bloomberg Dollar Spot Index added 0.2 percent, headed for its sixth advance in seven days.
• Gold futures slumped 0.1 percent to settle at $1,225.50 an ounce in New York for a fifth day of losses; the longest slump since November (Bloomberg.com).

At 11:38 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,219.70 Down $8.00
• Silver, $17.60 Down $0.24
• Platinum, $967.80 Down $11.40
• Palladium, $775.30 Up $0.70

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.