Spot Gold Tries to Gain Momentum

Cassie Bastien

3/21/2017 11:12:52 AM

Daily Gold & Silver Market Report – 03/21/2017

Although the financial market is able to withstand being pulled in different directions, Clyde Russell with Economic Times says that Gold is not able to do so. Investors were shocked to see spot Gold prices increase when the Federal Reserve raised interest rates March 15. With expectations that rates will rise at least twice more this year, and possibly three times in 2018, many investors are somewhat optimistic about the commodities market with the thought “that the rise in real yields may not be as dramatic given U.S. inflation is also on an upward trend,” Russell said. He continued, “What the Gold market is currently signaling is that while U.S. interest rate rises are still a bit of a headwind, they may not be enough to offset some compelling tailwinds.”

Truth for Silver

Said to be the most volatile of all Precious Metals, Andrew Hecht with Seeking Alpha says Silver “attracts the most speculative trading activity.” Hecht says there are a few reasons why Silver is “often a magnet for speculators and trend following traders” because of its liquidity and its historical pricing tends to trend in one direction. One thing good about this Precious Metal is the rallies tend to last longer than the dips. Hecht closes with, “The path of least resistance depends on investor demand.”

• So far in 2017, Silver managed to rise to $18.54 per ounce where it turned around and corrected to its most recent low at $16.825 on the active month May COMEX futures contract on March 10 (SeekingAlpha.com).

Trump Market Impacts Precious Metals

GoldSeek reporter Steve St. Angelo says, “Precious Metals investors believing the White House ‘Grandiose plans’, of making America great again, have cut back seriously on their Precious Metals buying.” Many people think President Donald Trump will put the economy back to the ways of the 1960s; “a manufacturing power house with high-paying jobs,” St. Angelo said. However, the future energy dynamics will not allow that. He said when the Dow Jones industrial average and broader markets finally flaw, “there won’t be too many [safe-haven assets] to invest in.” Investors will become more attracted to Precious Metals to use as a protection of wealth, especially when the supply starts to drop.

At 12:22 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,246.40 Up $9.60
• Silver, $17.63 Up $0.11
• Platinum, $974.90 Up $.50
• Palladium, $790.50 Up $7.40

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