Precious Metals Prices Surge on Geopolitical Tensions

Cassie Bastien

8/9/2017 12:41:35 PM

Daily Gold & Silver Market Report – 08/09/2017

Geopolitical tensions on the Korean peninsula escalated Wednesday as North Korea said it is ’“carefully examining” plans for a missile strike on the U.S. Pacific territory of Guam, just hours after U.S. President Donald Trump told the North that any threat to the United States would be met with “fire and fury,”’ Investing.com reported. Gold and Silver prices struggled earlier this week after the U.S. jobs report showed an increase of 461,000 to a seasonally adjusted 6.2 million, which marks the highest level since Dec. 2000. Investing.com noted, “in the precious metal were limited, however, as some [Federal Reserve] members suggested that the slowdown in inflation will continue to weigh on the Fed's ability to raise rates even if the U.S. job market continues to improve. ... The producer price index and the consumer price index data due Thursday and Friday, is expected to provide market participants with fresh insight into the pace of inflation. The slowdown in inflation has weighed on the prospect of rate hikes later this year, pressuring both the dollar and bond yields while helping boost demand for the Precious Metal.” Daily News & Analysis said Gold rose 0.6 percent early Wednesday with Silver increasing 1.2 percent following reports of North Korea's threats to Guam. Many investors are waiting for Silver to reach above $17 an ounce and question if Gold has the willpower to reach highs near $1,300 an ounce.

Reports Show Crude Oil Inventories Fell 6.45 Million Barrels

“The latest Energy Information Administration (EIA) data recorded an inventory draw of 6.45 million barrels for the week ending August 4th following a draw of 1.5 million barrels the previous week,” EconomicCalendar.com Contributor Tim Clayton said. There was choppy trading following disappointing data, with net losses to the $49.15 per barrel level from $49.40. Clayton said, “There were also further concerns over crude’s inability to gain further ground on positive fundamental news.”

At 1:42 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,276.80 Up $17.20
• Silver, $16.97 Up $0.48
• Platinum, $976.40 Up $2.10
• Palladium, $896.30 Down $8.10

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