Oil Surprise of 0.85 Million Barrel Inventory

Cassie Bastien

6/28/2017 9:53:33 AM

Daily Gold & Silver Market Report – 06/28/2017

After a 2.7 million barrel draw last week, the American Petroleum Institute inventory data for the week ending June 23 recorded a 0.85 million-barrel increase. Tim Clayton, contributing author for EconomicCalendar.com, says markets expected a draw of 2.6 million barrels so for the second time in three weeks, an unexpected build undermined market sentiment. Oil prices continued regaining ground Tuesday with a recovery from over-sold conditions and some bargain hunting, even with concerns surrounding over-supply. Clayton says the Wednesday’s inventory release from the U.S. Energy Information Administration “will be monitored closely and is liable to trigger further volatility. As well as the headline data, the production levels, fuel inventories and refinery utilization data will all be important elements.”

Gold Prices Remain Positive for Second Session

FXStreet Reporter Haresh Menghani explained one of the main reasons for Gold's steady rise is a delay in the U.S. healthcare bill vote, which “raised skepticism over President Donald Trump's ability to deliver on his promises of tax reform and pro-growth fiscal policies and triggered a sharp overnight sell-off in the U.S. equity markets.” Market volatility also caused the U.S. dollar to drop, helping support Precious Metal prices. As if that isn’t enough, Federal Reserve Chair Janet Yellen confirmed a continued gradual rise in interest rates. Weakness below $1,248 per ounce could pull Gold toward support of $1,242 per ounce, and Menghani says this could extend the slide toward multi-week lows support near $1,235 per ounce.

Gold, Silver Prices on the Rise

Both Precious Metals are trading in the green Wednesday on lower equities and a weaker dollar following European Central Bank President Mario Draghi hinting they could cut economic stimulus this year. Additionally, Economic Times reports strong buying by investors, retailers and industries further support the yellow and gray metals. However, Silver prices appear to be excelling while investors lack interest in Gold, as holdings with SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, declined by 0.35 percent.

At 10:53 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,251.60 Up $2.70
• Silver, $16.86 Up $0.14
• Platinum, $922.50 Up $0.60
• Palladium, $865.90 Down $2.50

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