Spot Silver Breaks $18

Cassie Bastien

3/28/2017 10:38:45 AM

Daily Gold & Silver Market Report – 03/28/2017

Peter Krauth with Money Morning said Monday was the first time since March 1 that spot Silver prices reached above $18 per ounce. Why the rally? Krauth says it is not only due to stocks, oil and the U.S. dollar taking hits, but ever since the Federal Reserve interest rate hike March 15, Precious Metals “prices have exploded”, with Silver prices rising 6.9 percent. So far this year, Krauth says Silver prices are up 12.8 percent and more gains are to come, saying, “[Silver is] clearly building momentum as it currently sits just above its 50-day moving average.” Many investors believe this bull market is expected to progress for the next few years.

• Silver prices have gained 4 percent over the past week while higher short-term rates, courtesy of the Federal Reserve, were unable to dampen the buying enthusiasm.
• The Gold/Silver price ratio has risen since early March and has consolidated near 71 (MoneyMorning.com).

Gold Prices Steady as Investors Focus on Trump

U.S. political and economic uncertainty surrounding President Donald Trump, along with expectations of a lower dollar, caused Gold prices to hold one-month highs. Following President Trump's failure to push through his healthcare reform last week, more and more investors are buying due to rising concerns about Trump’s ability to actually follow through with his agendas. A product of this concern caused the dollar to drop to a four-and-a-half-month low against a basket of currencies Monday. Julius Baer Analyst Carsten Menke said, “Changing perceptions of the outlook for U.S. interest rates will create volatility in Gold.” Reuters Pratima Desai said, “The U.S. Federal Reserve raised interest rates this month, boosting the dollar, which could strengthen further on expectations of further rises after comments from its policymakers. However, some analysts expect the Fed to keep rates on hold for some time, leaving the dollar to drift lower,” causing Precious Metal prices to continue their uptrend.

Dow at Risk of Longest Losing Streak Since 1978

CNN Money and FactSet data says the last time the Dow Jones industrial average fell nine days in a row Jimmy Carter was in the White House. Reporter Matt Egan says, “While the market hasn't retreated very far during the recent slump, it still represents a dramatic reversal from the early euphoria on Wall Street following President Trump's victory.” Many investors are starting to worry that President Trump’s failure to repeal and replace Obamacare will hinder the rest of his political and economic agenda. Wall Street is also keeping a close watch on the president's next moves; Egan said big banks such as Morgan Stanley and Goldman Sachs “have given back some of their post-election gains in recent days.” Yardeni Research President Ed Yardeni said, “For now, the so-called 'Trump bump' in financial markets may be turning into a 'Trump slump’.”

• The Dow's eight-day losing streak is its longest slump since 2011. The index is still up 11 percent since the November election.
• The Dow is only down 1.6 percent during the recent pullback, compared with a much more dramatic plunge of 7 percent during the August 2011 stumble (CNNMoney.com).

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

• Gold, $1,259.10 Up $0.50
• Silver, $18.31 Up $0.13
• Platinum, $963.10 Down $7.90
• Palladium, $798.10 Up $2.20

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.