Gold Price Rallies Again

Cassie Bastien

3/23/2017 10:09:28 AM

Daily Gold & Silver Market Report – 03/23/2017

Paul Whitfield with TheStreet says spot Gold prices have gained “more than 2 percent since mid-March as economic fundamentals lined up to support a rally,” and many think this rally could continue especially after Thursday's discussion of President Donald Trump's agenda and the Affordable Care Act. Following the Federal Reserve interest rate hike, Goldman Sachs said, "We believe that while both a bull and a bear case can be made for Gold, in the near term, risks remain skewed to the downside (strong U.S. economic data combined with a pick-up in global demand indicators may lead to rotation out of Gold)." They also believe the Fed might be somewhat behind “the curve,” stating it could cause a potential fall for Gold prices if the market tightens. Something also to keep an eye on is oil prices. Whitfield says, “Weaker oil prices will ease pressure on the Fed and other central banks to hike interest rates, which is bad for Gold prices.”

• Gold prices are up 2.3 percent since March 14.
• Dollar denominated generic gold futures for delivery in June have risen 4 percent to $1.250.70 over the same period (TheStreet.com).

Crude Oil Prices Rebound

Although oil prices were able to recover from Wednesday's drop, Tim Clayton with Economic Calendar says, “there was still selling interest on rallies with an underlying paring of long positions.” Clayton commented on crude oil inventories, explaining, “The latest Energy Information Administration data recorded an increase in inventories of 4.95 million barrels compared with an expected build of 2.8 million barrels,” pushing inventories to record highs. With current supply concerns, many investors started to speculate rallies causing an attraction to strong selling interest. Nonetheless, Clayton said, “There was no major impact from trends in currency markets and risk appetite was relatively steady as markets waited for U.S. political developments.” Although technical factors tend to have a more significant underlying impact, investors will be keeping a close eye on the U.S. dollar for the next 24 hours.

U.S. Stocks Waver on Wall Street

Investors remain eager as they await results from the Republican-led health care bill vote, causing U.S. stocks to trade in a more narrow range Thursday. If signed into law, this bill would abolish Obamacare and completely replace it, which would accomplish one of President Trump’s legislative goals and hopefully lead to further completion of his economic agenda. CNBC News Associate Fred Imbert said, “Expectations for such policies had been a boon for the stock market's post-election rally.” The Lindsey Group Chief Market Analyst Peter Boockvar said in a note, “The market has framed the House vote [Thursday] as a binary event but even if it passes, it has little chance of passing the Senate in its current form and that is when the real back and forth begins.” In economic news, Imbert reported “weekly jobless claims rose by 15,000 to 258,000, above the expected print of 240,000. [Also] Federal Reserve Chair Yellen spoke at a conference in Washington, D.C., but did not comment on monetary policy.”

At 11:09 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,251.70 Down $0.60
• Silver, $17.75 Up $0.10
• Platinum, $969.50 Up $5.60
• Palladium, $809.90 Up $18.90

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