Silver Rates on Track for Second Straight Weekly Gain

Cassie Bastien

5/26/2017 10:10:20 AM

Daily Gold & Silver Market Report – 05/26/2017

Spot Silver prices were on track for a second consecutive of week gains with help from a weaker U.S. dollar and risk aversion. Economic Calendar Reporter Sam Bourgi reported, “The dollar declined slightly against the [Japanese] yen after government data showed another monthly rise in Japanese core inflation.” However, after weeks of seeing sharp declines, the dollar is stabilizing as the Federal Reserve looks toward an interest rate increase at its next monetary policy meeting June 13-14, where the Fed will also cover GDP, unemployment and inflation. Bourgi reported Silver rates are on track to gain more than 2.5 percent for the week.

Gold Rates Get A Lift

Renewed geopolitical jitters, thanks to North Korea this time, saw Gold prices trying for back-to-back gains early Friday. After focusing on the dollar for most of the week, metal traders suspect a short-term driver has emerged for the yellow metal, MarketWatch News Editor Rachel Koning-Beals said. According to Politico and other news outlets, at a meeting with Japanese Prime Minister Shinzo Abe, President Donald Trump reportedly said the “big problem” of North Korea’s ambitions for a nuclear weapon will be dealt with, telling listeners “you can bet on that.” Furthermore, according to CME’s FedWatch tool, financial markets are currently pricing in an 83 percent probability of an interest rate increase, which could cut demand for dollar-priced Gold for investors using other currencies. Christopher Louney, commodities strategist at RBC Capital Markets, said in a note, “While the firing of FBI Director James Comey helped ‘Trump up’ Gold prices, the recent [Federal Open Market Committee] minutes from the May 2-3 meeting reinforce the Gold-negative macro environment and thus support the prospect of a slow ‘trickle down’ in Gold prices over the medium term absent geopolitical/political risks.”

Stock Futures Hold Lower

As Keris Alison Lahiff with TheStreet.com reported, “Stock futures pointed to a lower open  on Friday with the S&P 500 [down 0.17 percent] and NASDAQ [down 0.1 percent] on track to snap a six-day winning streak and retreat from records.” Although there were some gains surrounding consumer growth and business investments, Lahiff said that “overall economic performance over the first quarter remained somewhat weak as a cautious consumer and delayed winter weather depressed growth.” In addition to an expected interest rate hike, most members of the Fed's monetary policy committee also supported a plan to gradually reduce their $4.5 trillion balance sheet, which could begin as early as this year. Lahiff said, “A tighter monetary policy is seen as the Fed's vote of confidence in the health of the economy.”

At 11:10 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,269.50 Up $10.30
• Silver, $17.45 Up $0.15
• Platinum, $966.90 Up $11.50
• Palladium, $792.40 Up $18.40

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