Has Silver Peaked?

Cassie Bastien

7/25/2017 12:19:41 PM

Daily Gold & Silver Market Report – 07/25/2017

Currently, Silver prices are being helped by the U.S. dollar, but how long will this support last? With a Federal Reserve meeting beginning Wednesday, many investors are concerned with how Precious Metals will be affected. Market analyst Paul Robinson with DailyFX said, “From mid-April until now there is no denying the bearish backdrop to Precious Metals even though as of late they have been underpinned by a weaker U.S. dollar.” Robinson is almost positive that with upcoming geopolitical news, the Precious Metal market will soon turn negative. Looking at past “bounces,” many feel that is exactly what is happening right now. Robinson says, “We just need to see momentum in the current bounce start moving in reverse, giving us a better shot at having found the peak of the move.” With an almost zero percent chance of another interest rate hike from the Fed, attention will be on the the monetary policy statement and any indications for what the Fed may want to do at the September meeting.

August, September are Biggest Months for Gold Prices

Looking at Gold’s performance since 1979, Palisade Research said August and September are big months for the yellow metal. However, we can’t really point to just one determining factor. GoldSeek Reporter Mark O’Byrne says one of the reasons is that investors return from vacation ready to spend. “Concurrently, the largest financial crashes have occurred in September and October, investors are also buying Gold to hedge their portfolios.” Furthermore, Indian wedding season is huge for Gold, helping make India the world’s largest consumer of Gold jewelry. Finally, throw Christmas into the mix and O’Byrne calls it “the perfect retail storm.” O'Byrne notes, “Regardless if these theories are true or not, it is hard to ignore the decades of data that suggest the best months of Gold are yet to come” for 2017.

At 1:19 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,254.20 Down $2.90
• Silver, $16.62 Up $0.06
• Platinum, $932.70 Down $0.60
• Palladium, $855.90 Up $7.40

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