Precious Metal Prices Rebound After Federal Reserve Meeting

Cassie Bastien

7/27/2017 12:50:17 PM

Daily Gold & Silver Market Report – 07/27/2017

Silver prices saw a solid increase Thursday as the Federal Reserve’s latest policy decision Wednesday caused the U.S. dollar to fall to 15-month lows, according to Economic Calendar Financial Market Analyst Sam Bourgi. Silver for September delivery gained 1.8 percent to $16.76 per ounce at 7:36 a.m. (ET), putting the gray metal on track for its highest settlement in a month. “Gold prices surged to six-week highs, as bullion returned to its long-established inverse relationship with the dollar,” Bourgi noted. The U.S. dollar index, however, reached its lowest levels since April 2016. Bourgi reports, “The greenback is down nearly 9 percent year-to-date, making it one of the worst-performing currencies of 2017.”

Gold Could See Major Rally

CNBC Reporter Rebecca Ungarino says the U.S. dollar “has declined nearly 9 percent against a basket of foreign currencies year to date as the likelihood of parts of President Donald Trump's economic agenda getting underway has been called into question, and the prospect of further rate hikes from the Federal Reserve has pulled back.” As the dollar falls, the prices of dollar-denominated assets such as Gold typically rise. Phillip Streible, senior market strategist at RJO Futures, said, “We could really see other markets, like Gold, push up through that $1,300 [per ounce] level. We could see Silver recapture $18.” Nonetheless, the recent weakness in the dollar has tremendously helped Precious Metal prices as well as boosting the energy sector.

Caution Lights Are Flashing for Oil Industry

Bloomberg Markets Reporter Alex Nussbaum said, “Drillers from ConocoPhillips to Hess Corp. to Statoil ASA have slashed their capital spending plans in recent days, as companies lay out their plans to cope with oil prices stuck below $50 a barrel.” Although the cuts won’t technically mean less oil in the market, it will speak to anxious investors as a global rally in crude prices has stalled this year. Brian Youngberg, an energy analyst with Edward Jones & Co. in St. Louis, said, “The expectation was that oil would be at least above $50 by this time. ... Companies are going to be cautious. No one wants to be the outlier.”

At 1:50 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,262.40 Up $10.00
• Silver, $16.69 Up $0.12
• Platinum, $929.20 Up $5.50
• Palladium, $881.50 Up $11.70

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