Spot Gold Declines in Preparation of Yellen Speech

Cassie Bastien

6/27/2017 10:35:12 AM

Daily Gold & Silver Market Report – 06/27/2017

Gold continued its drop Tuesday ahead of Federal Reserve Chair Janet Yellen's speech, which could give clues on the pace of possible U.S. interest rate hikes for the coming months. Moreover, Reuters Reporter Nithin Prasad said, “The U.S. dollar hit a one-month high against the [Japanese] yen and rebounded against the euro on Monday after the European Central Bank chief defended the ECB's easy monetary policy.” If that isn’t enough to keep investors on their toes, many more political worries have been in the news such as the U.S. Supreme Court handing a victory to President Donald Trump Monday by reviving parts of a travel ban on people from six Muslim-majority countries. Additionally, Prasad noted, “Twenty-two million Americans would lose insurance over the next decade under the healthcare bill drafted by U.S. Senate Republicans, likely making it more difficult for the already-fraught legislation to win support for speedy passage.”

A Potential Rally for Silver Prices

Similar to other Precious Metals, Silver has been somewhat volatile in recent weeks in reaction to political issues, including the Fed raising interest rates. However, Investing.com believes even with the recent lows, Silver prices could be setting up for another rally. Nonetheless, it is relatively difficult to predict the timing of any potential breakouts. As it can break through the declining moving average lines from a graph shown by SilverDaily, Silver is likely to see some bullishness in the coming days.

Markets Could See a Huge Change with Recent News from CNN

Fox News analyst and host of “MediaBuzz” Howard Kurtz says, “Three CNN journalists who worked on a now-retracted story about Russia and a top [President Donald] Trump adviser are leaving the network. ... The story tried to draw a link between [Trump adviser Anthony] Scaramucci and the Russian Direct Investment Fund. Scaramucci was a Trump transition team member who has been nominated to an ambassadorial-level post based in Paris.” CNN Investigate Unit Executive Editor Lex Harris was the highest-ranking official to resign, along with story writer Thomas Frank and editor Eric Lichtblau. In the retraction, the network said the story “did not meet CNN’s editorial standards.” The network is now requiring approval from two top editors before any Russia-related story can be released. The question now lies in how or when will the markets react? Not only is there talk of “fake news” but also about President Trump and the work he has, or hasn’t, done. With talk of all the volatility, the market is bound to make some moves; we will have to wait and see whether those moves are good or bad.

At 11:35 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,249.00 Up $0.90
• Silver, $16.69 Down $0.01
• Platinum, $923.70 Up $4.10
• Palladium, $869.00 Down $5.00

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