Gold Has Best One-Day Gain in Over 2 Weeks

Cassie Bastien

5/11/2017 1:30:32 PM

Daily Gold & Silver Market Report – 05/11/2017

As of Wednesday, Gold futures tallied their best single-session gain in more than two weeks, according to MarketWatch Markets and Commodities Reporters’ Myra Saefong and Rachel Koning Beals. Movement within the Precious Metals market “comes against the backdrop of President Donald Trump’s dismissal late Tuesday of Federal  Bureau of Investigation Director James Comey over what the White House said was his handling of the investigation into Hillary Clinton’s emails; Trump critics were quick to point out the firing takes place as an investigation into Russian meddling in the election continues.” Naeem Aslam, chief market analyst at Think Markets, said, “Investors are seeing this event as escalating further tensions between [Trump] and the Democrats,” which is providing investors opportunities to hedge their investments. Furthermore, fed-funds futures have shown “markets are pricing in a nearly 90 percent chance of a rate increase at the Fed’s mid-June meeting, according to CME data,” as Saefong and Beals note. Investors will keep an eye on economic data, including retail sales Friday, for clues on the Fed’s next move.

• According to FactSet data, Gold prices have fallen by more than 2 percent from their 50-day moving average of $1,247.84 an ounce.

Solar Demand Helps Spark Rise in Silver

A boost in energy technologies has provided a much needed increase for the gray metal's demand. Tess Ingram, reporter with AFR.com, says, “Demand for Silver used in solar cells was a rare bright spot for the metal in 2016 as falling demand elsewhere offset the tightening of global mine supply.” Ingram also mentioned Silver demand from the photovoltaic industry “jumped 34 percent in 2016 to a record high of 76.6 million ounces in its strongest year of growth since 2010.” Thursday's annual World Silver Survey showed “the 49 percent year-on-year increase in global solar panel installations was driven largely by growth in China and the United States where installations rose 126 percent and 95 percent, respectively,” Ingram reported. GFMS senior analyst Johann Wiebe, who contributed to the report, said, “You see particularly in China and the U.S. that those trends seem to be continuing and to a certain extent in Europe as well. So this remains a growth area going forward.” Wiebe said he had an “optimistic but cautious” outlook for the spot Silver prices.

At 2:30 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,226.10 Up $4.80
• Silver, $16.36 Up $0.07
• Platinum, $918.90 Up $7.00
• Palladium, $805.80 Up $1.40

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.