Silver, What's Going On?

Cassie Bastien

7/11/2017 10:50:00 AM

Daily Gold & Silver Market Report – 07/11/2017

Silver prices crashed Friday, experiencing their lowest levels in 15 months, after the U.S. jobs report posted unexpected gains. Prices are slowly working their way back to $16 per ounce but investors remain leery without a steady uptrend. Many just want to know if this losing streak will continue or if the gray metal will start to make a comeback. Furthermore, SeekingAlpha Reporter Victor Dergunov says, “Geopolitical events and technical indicators are providing additional support that Silver/SLV may be undervalued and that a washout may have taken place in the Silver futures market.”

Gold Prices Fall as Markets Await Yellen Testimony

The U.S. dollar grew and spot Gold prices fell as many await Federal Reserve Chair Janet Yellen’s scheduled testimony Wednesday and Thursday regarding another potential interest rate hike for 2017. FXEmpire Reporter Yaron Mazor said, “Spot Gold fell by 0.2 percent and reached $1212.01 per ounce at 08:30 GMT after reaching a low of $1204.45 in the previous session.” According to the latest monthly Consumer Expectations Survey by the New York Federal Reserve, consumers are expected to increase spending in the coming months. Mazor said, “They have voiced confidence about finding new jobs instead of losing one due to a strong labor market in U.S.”

Troubles Ahead in the Stock Market?

Analysts see increasing signs of stock market trouble ahead, and global strategists from Citigroup and JPMorgan warned of events that could affect the equities rally. Citigroup said the possibility of raising interest rates within the closing year could bring concerns to world markets while JPMorgan is “concerned second-half earnings may not be as robust as the market is anticipating,” according to CNBC Markets Editor Patti Domm. With major banks kicking off second-quarter earnings reports at the end of the week, Fundstrat Co-Founder Thomas Lee says earnings will be the “acid test” for stocks. Citi strategists wrote in a note Monday, “Rising bond yields have started to worry investors with signs of increased volatility across a number of risk assets and emerging markets. Recent data have shown outflows from U.S. and European equities as well as from [emerging markets] bond funds and reduced inflows to [emerging markets] equities.” They noted earnings remain strong enough to support stocks for now, however, Domm writes, “the stock market could be at risk if there is a global economic slowdown coupled with softer earnings.” This could lead to investors turning their pockets toward safe-haven assets such as Gold.

At 11:50 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,216.10 Down $0.10
• Silver, $15.83 Up $0.08
• Platinum, $899.80 Down $4.10
• Palladium, $857.60 Up $10.30

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