Gold Pulls Back From 2-Week High as U.S. Dollar Steadies

Cassie Bastien

7/19/2017 12:15:15 PM

Daily Gold & Silver Market Report – 07/19/2017

Gold slipped back near $1,240 an ounce Wednesday as the U.S. dollar regained some strength from its 10-month lows. Jan Harvey with Reuters says ,“Gold prices had risen nearly 2 percent by late Tuesday from early Friday levels as the collapse of U.S. President [Donald] Trump's healthcare bill and waning expectations for further rate hikes from the Federal Reserve this year pressured the dollar. The U.S. currency edged up 0.2 percent against the euro on Wednesday but stayed on the defense as investors wagered any further tightening in the U.S. would be slow at best, while optimism on China's economy underpinned Asian shares and commodities.” ING Analyst Warren Patterson says they have a more optimistic view of spot Gold, saying, “We believe a large part of the interest rate hike (and) monetary tightening expectations are already priced in, so we don't think that should weigh too much more on Gold prices.” Despite a strong start to the year, Gold prices were hindered by expectations U.S. monetary policy is on a tightening path, keeping the yellow metal in a narrow range in the last quarter.

Charts Show Possible Upcoming Rally for Silver Prices

Silver, along with other Precious Metals, has been through a lot as of late and is, as Steven Knight says, “becoming trapped below a declining trend line and changing economics in the demand and production.” In recent news, FXStreet reports there are daily technical indicators which could affect spot prices in the coming week. “Although the fundamental factors are long term in nature, the rising supply deficit largely agrees with what has been seen in the physical metals market with rising prices for actual Silver coins and bars. Subsequently, it is no surprise that some bullish technical factors are now also starting to appear in the daily charts.” Analysts say there are various technical factors providing hints at where Silver could head, suggesting there is momentum for an upside move. Nonetheless, Silver can break its current downtrend, Knight says, “if a break above this level is relatively conceivable in the coming weeks given a range of factors.”

Oil Prices Continue Gains

CNBC and Reuters report a U.S. commercial crude inventory decline of nearly 4.7 million barrels the week to July 14, far above the expected 3.2 million barrel decline. Gasoline supplies also dropped by 4.4 million barrels, far more than the expected 665,000. Oil prices continue gains Wednesday following both of these steep declines. CNBC's Tom DiChristopher said, “Supplies from the Organization of the Petroleum Exporting Countries (OPEC) also remain high, largely due to rising output from member states Nigeria and Libya, casting a shadow on efforts by the group to rebalance the market. ... Crude prices are down around 15 percent this year, making oil one of the worst-performing commodities in 2017.”

At 1:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,244.70 Down $0.40
• Silver, $16.41 Up $0.03
• Platinum, $925.80 Down $6.50
• Palladium, $867.10 Down $5.30

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