The Heavily Anticipated Meeting between Two Presidents Has Arrived

Cassie Bastien

4/6/2017 1:40:00 PM

Daily Gold & Silver Market Report – 04/06/2017

The first meeting between the leaders of the world's two largest economies begins Thursday. President Donald Trump believes Beijing has kept its currency (the yuan) artificially low as part of a trade policy he says has destroyed American jobs and created an enormous gap between what the U.S. imports and exports from China. Jethro Mullen with CNNMoney says, “Despite plenty of evidence that it’s no longer a fair criticism, Trump won't let the issue drop.” In a recent interview with Financial Times, President Trump labeled China "world champions" of currency devaluation, returning to a riff from his campaign. Mullen says “if Trump insists on talking about the yuan, he would be well advised to press for the status quo.”

Fear of a Stock Market Crash Causes Gold Prices to Rise

Growing fears regarding over-inflated stock markets on the brink of crashing amid a cocktail of risks that includes a crucial meeting between U.S. President Donald Trump and Chinese President Jinping Xi have caused spot Gold prices to jump. Lana Clements with Express.co.uk reports, “Britain's top stock market the FTSE 100 fell by around 0.5 percent on Thursday after losses in Asia and on Wall Street overnight.” Precious Metals are traditionally a safe-haven asset in times of market turmoil and downturns. Just over a month ago, Clements said Gold values “pushed higher to sit at $1,254 [per ounce], now up from around $1,200.” Experts are saying spot Gold prices could hit around $1,300 per ounce if fears continue over sky-high stocks. Furthermore, after his recent failure to get his healthcare bill signed off by Congress, fear surrounding President Trump has caused investors to rely on assets such as Gold and Silver, increasing their demand.

Silver Prices Start to Recover

U.S. ADP data and the Federal Reserve's March meeting minutes failed to sustain the dollar's momentum, allowing Silver prices to regain footing. Tim Clayton with Economic Calendar said, “The U.S. ADP employment data was above consensus expectations of 185,000 with a private payrolls increase of 263,000 for March. U.S. Treasuries also dipped lower with 10-year yields rising to 2.37 percent.” Although overall selling pressure was narrow, a stronger dollar and higher bond yields pressured all Precious Metal prices. Clayton said, “In choppy trading, there was a significant net Silver retreat, although there was support near $18.15 [per ounce] ahead of the Fed minutes.” Silver also gained support from confidence in the global growth outlook. In the midst of choppy trading and uncertainty surrounding the Federal Open Market Committee, Clayton says, “Trends in the dollar and wider commodity prices will continue to dominate Silver trading in the short term.”

At 102:40 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,254.30 Up $5.30
• Silver, $18.33 Up $0.06
• Platinum, $957.70 Down $1.90
• Palladium, $806.00 Down $3.70

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