Silver On Track to Reach High Target

Cassie Bastien

6/6/2017 1:26:32 PM

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

Money Morning Reporter Peter Krauth says, “With last week's 1.2 percent gain, the price of Silver in 2017 is now up 9.9 percent to $17.58 [per ounce].” He says the rate of Silver prices could run into overhead resistance, leaving the price in a bullish state. In the meantime, technical indicators “[favor] higher Silver prices. And on the fundamental side, Silver drivers equally point to positive conditions for the metal,” Krauth said. If we keep a close eye on indicators like the Gold/Silver ratio, it shows the gray “metal has a lot more room to run higher this year.”

Investors Turn to Gold

Tension in the Middle East, an upcoming election in Britain and testimony from former FBI Director James Comey caused investors to lean toward safe-haven assets such as Gold and German government bonds,which Reuters Reporter Abhinav Ramnarayan says are two of the safest assets in the world. This pushed investors away from riskier-type assets causing shares within the U.S. and European Union to fall along with Asian trading. OANDA Market Analyst Craig Erlam said, “We have a big week or so ahead of us with the UK heading to the polls and the [European Central Bank] announcing its latest monetary policy decision on Thursday and the Federal Reserve doing the same next Wednesday.” Furthermore, the dollar touched a seven-month low ahead of Comey's testimony Thursday. According to Ramnarayan, reports suggest Comey “plans to talk about conversations in which U.S. President [Donald] Trump allegedly pressured him to drop his investigation into former national security adviser Mike Flynn, who was fired for failing to disclose conversations with Russian officials.”

It’s The Super Bowl of Washington

Many viewers say Thursday’s congressional testimony of fired FBI Director James Comey looks like the Super Bowl of Washington politics. Ever since Comey was fired in early May, CNN Editor-at-large Chris Cillizza says Washington has anxiously awaited the day when Comey “tells his side of the story of just what transpired between him and President Donald Trump between January and May.” Not only will Comey testify, Cillizza adds “he'll have no shackles -- at least from senators -- on what he can say. And his words will be heard by, basically, anyone who turns on a TV for any part of the day on Thursday.” So the question here lies in how does this affect the market, especially the Precious Metals market? Gold and Silver rates feed off volatility and this could definitely fire up concerns surrounding the government and economy. Cillizza says, “Thursday is shaping up to be the single biggest day in Washington in decades.” With that being said, there’s no telling what the world markets could do.

At 2:26 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,296.50 Up $13.80
• Silver, $17.79 Up $0.11
• Platinum, $964.80 Up $4.70
• Palladium, $857.20 Up $8.40

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