Silver Prices Edge Lower

Cassie Bastien

4/25/2017 12:38:54 PM

Daily Gold & Silver Market Report – 04/25/2017

Investors hold tightly to bullish stocks as they await the results of the French presidential election, causing spot Silver prices to dip below $18.00 per ounce Tuesday. Despite the sharp declines in spot Gold prices, the gray metal managed to stay steady Monday. Market Analyst Sam Bourgi with Economic Calendar said, “The U.S. dollar index also stabilized from a selloff against the euro that was triggered by growing bets France would remain part of the European Union. ... The first round of the French presidential election triggered a relief rally in global equities,” causing Precious Metals to run into volatility. Onlookers expect pro-EU candidate Emmanuel Macron will win the second-round runoff against the National Front’s Marine Le Pen.

• The dollar index rose 0.2 percent overnight before paring gains to settle flat at 99.06.
• The euro was little changed Tuesday morning and was last seen trading at 1.0873 U.S. (EconomicCalendar.com).

Gold Adds to Declines in Market

Myra Saefong and Mark Decambre with MarketWatch said, “Gold futures traded in negative territory Tuesday, extending the previous session’s hefty decline that followed the first round of France’s presidential election, which eased fears that politicians eager to pull the country out of the European Union would emerge as front-runners.” Gains for riskier assets, such as stocks, added to the spot Gold price decline from Monday, with equity-index gauges in Europe and the U.S. advancing “on the cooling of geopolitical jitters and better-than-expected corporate quarterly results,” the reporters explained. Sharps Pixley Ltd. CEO Ross Norman said geopolitical tensions easing, including between the U.S. and North Korea, has eroded appetite for Gold. “There is a bit of risk-on sentiment and signs of some global growth coming through that would take some of the shine off Gold,” Norman said, adding that lower prices may actually support Gold from traditional buyers in China and India, as prices become “more affordable.”

Risks Remain Within Market

Bob Pisani with CNBC says there are four major risks within the markets that have been in conversation for months: geopolitical, weaker economic data, pushing out fiscal reforms and high valuation of the stock market. However, aside from geopolitical uncertainty across the nation, Pisani said, “the other risks have a good chance of resolving to the upside. Earnings growth expectations are holding up, so far. U.S. economic data is likely to improve, which means there are no signs of an economic recession, the surest killer of rallies, and there isn't even a big indication of a correction on the horizon.” But what is the current highest risk within the markets? According to Pisani, it is the weakening within the economic data. He notes, “Bulls are insisting that first quarter economic data has been weak for several years and that second quarter data will show notable improvement. They have a major ally in global growth ex-U.S. ... The French outcome can only be helpful to the European economy, and likely to European bond yields.”

At 1:38 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,267.20 Down $11.30
• Silver, $17.69 Down $0.29
• Platinum, $957.80 Down $2.90
• Palladium, $802.30 Up $1.90

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