Spot Gold Prices Find Support After FOMC Meeting

Cassie Bastien

5/25/2017 1:10:23 PM

Daily Gold & Silver Market Report – 05/25/2017

Following Wednesday’s Federal Open Market Committee (FOMC) meeting, spot Gold prices regained traction within the market. Pablo Piovano with FXStreet said, “Members of the Committee have suggested as well that further evidence of the ‘transitory’ slowdown in Q1 is needed in order to assess the Fed’s future steps,” causing additional uncertainty around the U.S. dollar. Although Gold prices have traded in the upper end of the recent range, Piovano said the yellow metal “is advancing for the first time after two consecutive pullbacks.” The FOMC has kept its view of a gradual tightening of the Fed’s monetary conditions in the next months, causing uncertainty surrounding the dollar, drawing investors toward safe-haven assets like Gold and Silver.

Silver Prices Continue Uptrend

After several lateral moves earlier in the week, Silver rates managed to rise Thursday as the multi-week uptrend continued. Sam Bourgi with EconomicCalendar.com said, “Silver’s continued recovery hinges upon a few technical hurdles that, if breached, could lead prices back toward the April swing high north of $18.50 [per ounce].” One of the main catalysts behind the recent uptick in the Precious Metals market is the weak U.S. dollar. Shortly after the latest Fed meeting minutes showed policymakers would strongly consider raising interest rates at June's Fed meeting, the greenback failed to rally.

Oil Prices Slip

The Organization of Petroleum Exporting Countries (OPEC) and other non-OPEC members agreed to extend production cuts, adding an additional nine months, pushing the cut of 1.8 million barrels per day (bpd) through March 2018. However, Reuters Reporter Julia Simon said, “OPEC's decision to extend production curbs fell short of expectations of deeper or longer cuts,” causing oil prices to fall early Thursday morning. Such cuts have helped push oil back above $50 a barrel this year, giving a fiscal boost to producers. Saudi Arabia's energy minister, Khalid al-Falih claimed he and other ministers saw no need for further reductions of oil output. As Simon explains, “The global glut of supply has proved difficult to draw down even after OPEC agreed to cut production in the first half of the year. ... [However] Rising U.S. production may continue to offset OPEC's cuts, even though refining runs have touched record levels in the United States in recent weeks.”

At 2:09 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,257.90 Up $2.00
• Silver, $17.28 Up $0.06
• Platinum, $953.40 Up $3.60
• Palladium, $773.90 Up $7.20

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