Silver Price Rally Continue as Dollar Selloff Intensifies

Cassie Bastien

3/27/2017 11:19:12 AM

Daily Gold & Silver Market Report – 03/27/2017

Precious Metals have caught another tailwind from the falling U.S. dollar, causing spot Silver prices to rise more than one percent earlier today. Economic Calendar market analysts Sam Bourgi said, “The rally was triggered by another sharp drop in the U.S. dollar combined with risk aversion in the equity markets following a failed healthcare bill in Washington on Friday.” This most recent drop puts the dollar on track for its weakest settlement since before the Presidential Election of Donald Trump, causing Silver and other Precious Metal prices to continue their rise.

• The U.S. dollar index, a broad performance measure of the buck, fell 0.5 percent to 99.09.
• Dow Jones futures were off more than 100 points. Futures on the S&P 500 Index also fell 0.8 percent (EconomicCalendar.com).

Spot Gold Prices Continue to Rise

Spot Gold prices climbed due to a decrease in the U.S. dollar along with U.S. Treasury bond yields after the AHCA healthcare reform bill was “shelved” on Friday, said DailyFX reporter Ilya Spivak. He continued, “AHCA’s failure poured cold water on rate hike bets conditioned on Trump’s inflationary economic platform of tax cuts, deregulation and infrastructure spending, as expected.” Oil prices are also continuing to struggle, Spivak said, “to find lasting direction cues having stalled above the $47/bbl figure two weeks ago. Downside pressure may be mounting however as swing supply continues to swell while OPEC members and like-minded producers outside the cartel struggle to find common ground.” Baker Hughes reported that the number of active US extraction rigs rose to the highest level since mid-September 2015 last week. So what does this mean for Gold prices? Investors are on the lookout as they watch Precious Metal prices continue to rise.

Oil Prices Drop Due to Worries over Global Supply Resurface

Renewed concerns about global oil supply after a meeting of OPEC producers failed to impress investors early Monday morning, causing oil prices to drop. Five representatives of countries such as Kuwait, Algeria, Venezuela and non-OPEC nations Russia and Oman that signed up to the Organization of the Petroleum Exporting Countries output agreement met in Kuwait on Sunday to review the current levels of compliance. Market reporter Barbara Kollmeyer with MarketWatch said that, “data suggests not all non-OPEC members are adhering to quotas.” The meeting provided little concrete news causing prices to shift lower today. Kollmeyer said, “Those OPEC official urged members to cut oil production in line with last year’s agreement, and said the compliance committee will meet again in late April to recommend to the cartel whether cuts need to be extended another six months.” Ipek Ozkardeskaya, Senior Market analyst at London Capital Group said, “We remind that the selloff in the oil markets was triggered by record high levels of U.S. oil inventories, which are not meant to fade under the Trump administration, which is longing for less energy dependency for the U.S.”

At 12:19 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,256.60 Up $5.30
• Silver, $18.14 Up $0.32
• Platinum, $971.20 Up $1.30
• Palladium, $796.60 Down $18.30

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