The “Yo-Yo” Market

Cassie Bastien

6/30/2017 10:07:30 AM

Daily Gold & Silver Market Report – 06/30/2017

CNN Money reporter Paul La Monica said that the Dow dropped more than 165 points Thursday, Nasdaq tumbled nearly 1.5 percent, and tech leaders such as Apple, Amazon, Microsoft, and Facebook were also all lower. The day prior, however, Nasdaq especially experienced one of their best days in months! La Monica says “It looks like traders are letting their emotions get the best of them.” Most investors, La Monica says, still think that the Fed Reserve will keep interest rates fairly low in order to keep the economy easing along. Wall Street also is holding out hope that promises that President Trump made about tax reform, in addition to unwinding regulations on banks and health care and launching a stimulus program focused on infrastructure spending will eventually happen. Nonetheless, the fate of the market will depend on whether companies are able to keep reporting positive results and if consumers continue to spend. Results of that will be more defined when Corporate America starts posting their second quarter earnings scheduled for late July.

Gold Prices Down 0.4 Percent in Second Quarter

Hints from leading central banks that the era of easy money may be coming to a close pushed bond yields higher caused Gold prices to ease today and stay on track for its first monthly loss this year, says reporter Jan Harvey. With essentially all Precious Metals being sensitive to rising yields, Harvey explains that it lifts the opportunity cost of holding non-interest bearing bullion. Although the yellow metal ended the first quarter of this year strong, a report by Reuters explains that spot prices have not only fallen almost 2 percent thus far in June, but are down 0.4 percent on a quarterly basis. Harvey goes on to explain that “Comments from the euro zone, British, and Canadian central banks this week indicated that quantitative easing programs put in place in the wake of the financial crisis may be being wound up, leading to a gradual normalization of interest rates.” Capital Economics analyst Simona Gambarini said, "At the same time, in the UK and Europe, although policy will remain loose for some time, it will start to turn the other way. So all in all, it doesn't bode so well for Gold prices."

Choppy Silver Prices Due to Geopolitical Uncertainty

FXEmpire reporter Christopher Lewis said Silver prices fell yesterday, and continued to drop at the start of today. Furthermore, the U.S. dollar continues to be thrown around the Forex market, and that of course puts a bit of a natural bid into the Silver markets. Lewis feels that “the $16.50 level underneath is going to be massively supportive though, so I would expect some type of rally.” However, with this frequent “choppiness” as Lewis calls it continues, it is possible that Silver prices could potentially peak to the $17 range. If that happens, analysts believe that the small rally could continue to grow but will remain bullish.

At 11:08 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,245.00 Down $3.00
• Silver, $16.71 Down $0.01
• Platinum, $924.00 Down $0.10
• Palladium, $855.40 Down $5.80

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