Silver Charts Show Narrow Weekly Gain

Cassie Bastien

7/28/2017 10:43:18 AM

Daily Gold & Silver Market Report – 07/28/2017

Despite recent volatility, momentum returned to the commodity markets this week. Similarly, Silver rates edged lower Friday but managed to stay ahead of weekly gains, however narrow. Sam Bourgi with Economic Calendar reports the gray metal is on track for a weekly gain of around 0.5 percent. In correlation, the U.S. dollar index was down 0.2 percent through the morning session.

Gold Prices Rise On Weaker Dollar Following GDP

Gold prices reversed their course and rose Friday after the U.S. gross domestic product (GDP) report showed a second-quarter rebound after a soft start to the year. Typically, that would help support the struggling dollar and hinder the demand for Gold values. However, with the recent dovish Federal Reserve policy update, MarketWatch News Editor Rachel Koning-Beals said Gold prices could close at their highest level since June 8. On Friday, “the ICE U.S. Dollar Index was trading down 0.3 percent.” As expected, the Fed stood pat on interest rates Wednesday and said it would start reducing its $4.5 trillion balance sheet “relatively soon.”

Precious Metals Stay Strong as U.S. Data Dampens Rate Hike Expectations

Lowered expectations of further Federal Reserve interest rate hikes in coming days, second quarter U.S. GDP results and labor cost data pushed the U.S. dollar lower, allowing Precious Metal prices to hold their own and end the week in positive numbers. Commerzbank Analyst Carsten Fritsch said, “[The GDP data] showed a big fall in annual inflation rates across the board...so there is no urgency for the Fed to raise interest rates.” Julius Baer Analyst Carsten Menke reports the dollar has weakened for five consecutive months, which together with short-covering has helped Gold gain around $60 since early July. Furthermore, Peter Hobson with Reuters said Chinese data on Friday showed consumption of Gold in the country rose by 10 percent in the first half of the year while production fell, causing higher imports. 

• U.S. bond yields were largely flat while global share prices were down (Reuters.com).

At 11:42 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,272.70 Up $9.20
• Silver, $16.82 Up $0.14
• Platinum, $937.50 Up $10.10
• Palladium, $888.00 Up $4.20

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