Is It Time For Silver to Shine?

Cassie Bastien

6/22/2017 3:10:58 PM

Daily Gold & Silver Market Report – 06/22/2017

The high Gold/Silver price ratio, which rose to its highest level since March 2016, could spur Silver demand and make the gray metal the metal of choice, according to Kathleen Brooks with City Index. World markets and stocks have been tough to follow, but the volatility is what investors are weighing on for hopes of some sort of spike. Brooks says global bond yields are low and oil prices are falling, which could boost Silver’s appeal relative to Gold “because it tends to have a higher beta to risky assets compared to the yellow metal.” And with recent support found around $16.40 per ounce, Brooks thinks this could help push prices back up to around $18 per ounce.

Gold Prices Try for Back-To-Back Wins

After hitting five-week lows earlier this week, the spot Gold price appeal as a safe-haven asset has finally felt some relief in recent hours Thursday. Oanda Senior Market Analyst Craig Erlam said, “We’re seeing risk aversion in the markets once again ... with U.S. [stock] futures currently slightly in the red, Gold adding to recent gains and the yen edging higher.” So how did this happen? MarketWatch News Editor Rachel Koning Beals says, “The closely watched dollar index slipped a narrow 0.02 percent to 97.54, lessening the currency-related headwind for commodities priced in the currency, including Gold.” However, with recent comments from Federal Reserve officials about another possible interest rate hike, the demand for Precious Metals has been close to dull. In an interview with the Financial Times Wednesday, Philadelphia Fed President Patrick Harker said he advocated for a “pause” on rate increases while the central bank starts to pare its $4.5 trillion balance sheet. 

Brent Crude Oil Falls Below $45 per Barrel

As concerns over a supply glut and falling demand dominate, oil worries grow as Brent crude falls below $45 per barrel, close to Wednesday's seven-month low. TheGuardian.com reports U.S. crude oil hit its lowest levels since last summer, which helped send energy stocks sliding on Wall Street. Bloomberg says this selloff is driven by multiple factors such as the oil market being oversupplied, and skepticism that the Organization of Petroleum Exporting Countries can actually enforce its production freeze deal.

At 4:10 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,252.50 Up $5.20
• Silver, $16.66 Up $0.17
• Platinum, $928.00 Down $2.00
• Palladium, $889.60 Up $3.10

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