Gold Records Biggest Spike in 3 Months

Cassie Bastien

8/10/2017 12:25:26 PM

Daily Gold & Silver Market Report – 08/10/2017

On Wednesday, Gold prices recorded their sharpest daily increase since mid-May amid a “war of words” between the U.S. and North Korea. MarketWatch Reporters Mark Decambre and Victor Reklaitis said, “North Korea’s recent threat to launch a missile strike at U.S. territory Guam has helped elevate” buying of safe-haven assets such as Gold and Silver. Ross Norman, chief executive officer of London-based Sharps Pixley, Ltd, said Precious Metals are acting as they should, but feels the yellow metal needs to reach at least $1,295 an ounce “to be convinced that the commodity has entered a more significant bullish phase.” Referring to U.S.-North Korea tensions, Norman said, “I’m always suspicious of moves like this because the issues that cause them are rarely sustained.” So whether or not this tension will progress to something more or just fizzle away, investors and those alike are feeling a little relief as Gold and Silver prices finally pull themselves up and show positive gains. The question is, how long will this last?

Silver Finally Reach Above $17.00

According to financial market analyst Sam Bourgi with Economic Calendar, Silver prices reached two-month highs Thursday on the global political tension. He noted, “Risk aversion triggered a large drop in Asian and European equities, with Wall Street following closely,” as heightened tensions drove investors to traditional safe-haven assets. Interestingly enough, the U.S. dollar index also rose about 0.2 percent early Thursday, limiting the gains of Precious Metals.

U.S. Stocks Fall Further

While other commodities experienced positive gains from recent tension between North Korea and the U.S., Reuters reported U.S. stocks fell sharply Thursday, with the Dow Jones industrial average slipping more than 100 points. Brad McMillan, chief investment officer for Commonwealth Financial, said, “When you have a market like we have had this year, and it has been amazingly calm, and you introduce a major source of uncertainty, there is bound to be some reaction.” Reuters Reporter Sruthi Shankar said, “[Recent] data showed U.S. producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.”

At 1:25 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,287.20 Up $10.90
• Silver, $17.18 Up $0.21
• Platinum, $984.60 Up $8.50
• Palladium, $905.50 Down $7.70

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