What’s Next for Spot Gold Prices This Week

Cassie Bastien

4/3/2017 12:16:40 PM

Daily Gold & Silver Market Report – 04/03/2017

Supported by uninspiring U.S. economic data and dovish remarks from St. Louis Federal Reserve President James Bullard Friday, spot Gold prices have not moved much;. However, investors are keeping a close eye on prices with the expectation of further interest rate hikes this year. Mark To, head of research at Hong Kong's Wing Fung Financial Group, said, “The interest rate hike cycle has set in and that might keep Gold in a wide range of $1,200-$1,250 [per ounce] as the opportunity cost of holding non-interest rate bearing Gold is more.” Reuters Reporter Sethuraman NR said, “Spot Gold notched a quarterly gain of about 8.4 percent on Friday, marking its best quarter in a year, mostly driven by uncertainties around U.S. President Donald Trump's policies and elections in Europe.” The main focus this week is U.S. payroll figures Friday and President Trump's first meeting with Chinese President Xi Jinping. INTL FCStone analyst Edward Mei said, “We think that both the Gold and Silver complexes will make fresh highs this month ahead of the French elections, but likely fade in their immediate aftermath.”

Silver Prices Drop Amid Rising Dollar 

As the U.S. dollar stretched its rally to multi-week highs, Silver prices started to trade lower early Monday morning reflecting, generally quiet demand for all Precious Metals. Economic Calendar financial market analyst Sam Bourgi said, “The U.S. dollar was on track for fresh three-week highs on Monday, as demand for the greenback returned after a sharp sell-off last month. ... The dollar index rose 0.3 percent to 100.61.” Many investors are curious if, with upcoming economic discussion, the dollar will continue to rise or Precious Metals gain more ground.

• Silver prices have rebounded more than 7 percent from the mid-March swing low, but has gone largely unchanged over the past four sessions.
• Gold prices also drifted lower at the start of the week, with the June futures contract slipping or 0.3 percent, to $1,247.10 a troy ounce (EconomicCalendar.com).

Trump Rally Is Alive and Running

Investors are starting the second quarter on a positive note as the Dow Jones industrial average gained nearly 5 percent during the first quarter, while the Nasdaq is scheduled for a 10 percent jump, its best quarter since 2013. Furthermore, CNNMoney reporter Matt Egan said, “Wall Street [celebrated as the] Dow crossed both the 20,000 and 21,000 levels for the first time, and the bull market turned eight years old.” Ameriprise Financial Chief Market Strategist David Joy said, “Wall Street is still giving the administration the benefit of the doubt that they'll get something done on tax reform. ... The wearing off of Wall Street's post-election euphoria is a good thing for the long-term stability of the rally.” Stock investments have been on the rise recently due to underlying earnings growth not keeping up with stock prices. ConvergEx Chief Market Strategist Nicholas Colas told clients to get ready for “much higher” volatility, as the newly-elected “unconventional president” is having a “rocky start policy-wise.”

At 01:16 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,254.40 Up $2.80
• Silver, $18.29 Down $0.05
• Platinum, $957.90 Up $5.50
• Palladium, $805.00 Up $4.90

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