Spot Gold is Steady

Cassie Bastien

3/14/2017 9:54:51 AM

Daily Gold & Silver Market Report – 03/14/2017

Spot Gold prices began to balance out early Tuesday as investors await the two-day U.S. Federal Reserve meeting, where interest rates are expected to be raised. An uptick in inflation, the strengthening U.S. jobs market and uncertainty surrounding the upcoming elections in Europe all point to a rate hike. Reuters says the bank will release a statement at 1800 GMT Wednesday followed by a briefing at 1830 GMT. Furthermore, additional interest rates are anticipated throughout 2017, which could weigh on Gold prices causing investors to abandon the yellow metal.

• Holdings of the SPDR Gold Trust, the world's largest Gold-backed exchange-traded fund, rose 0.83 percent Monday.
• Platinum and Palladium were also mostly unchanged at $936.20 per ounce and $750.80 per ounce, respectively (Reuters).

Silver Also on the Rise

Silver prices are also balancing out ahead of the Federal Reserve meeting beginning Tuesday. Economic Calendar Financial Market Analyst Sam Bourgi said, “Price action has steadied over the past three sessions after a multi-week reversal knocked the grey metal off three-and-a-half month highs.” The official interest rate statement is due at 2 p.m. (ET) Wednesday. Bourgi says according to CME data, “Fed Fund futures prices imply a 93 percent probability of a rate hike on Wednesday.”

• The U.S. dollar rose against a basket of other major currencies ahead of the Federal Open Market Committee (FOMC) meetings, up 0.3 percent at 101.58.

How Rising Interest Rates Affect Baby Boomers

With the first 2017 rate hike scheduled to happen this week, the Federal Reserve gave insight back in December to include three total rate hikes this year. FoxBusiness reporter Casey Dowd says, “According to some personal finance experts, that should be welcome news to Baby Boomers preparing for retirement.” Bob Johnson, CEO of the American College of Financial Services and author of Invest with the Fed, said, “Rising interest rates are going to increase returns on safe investments that are popular with retirees, [including CDs and money market accounts].”

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

• Gold, $1,207.50 Up $1.60
• Silver, $17.04 Up $0.00
• Platinum, $943.00 Down $0.20
• Palladium, $750.60 Down $5.30

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