Gold is Dropping!

Cassie Bastien

8/15/2017 2:12:15 PM

Daily Gold & Silver Market Report – 08/15/2017

According to the country’s state media, North Korean leader Kim Jong Un announced Tuesday he would not launch a ballistic-missile attack on the U.S. territory of Guam. However, according to Reuters Reporter Christine Kim, “[he] said he will watch the actions of the United States for a while longer before making a decision.” These remarks caused Gold to retreat for its second straight session according to MarketWatch Reporter Mark Decambre. A research note from UBS Research Strategist Joni Teves indicated an upside for Gold still exists but acknowledged that it may be limited in the face of what might be bullish momentum for so-called risk assets like the Dow Jones Industrial Average DJIA, +0.62 percent and S&P 500 index SPX, +1.00 percent, which have regained their upward trajectory. Furthermore, gains were limited due to a rising dollar, which Decambre says “has gained 0.8 percent over the past two sessions.” UBS wrote, “While we maintain our positive outlook on gold, we also recognize that the risks to our price expectations are skewed to the downside.”

Oil Prices Fall On Stronger Dollar

After a surge in the dollar index of 0.3 percent earlier Tuesday, oil prices also dropped. Brent and U.S. crude reached two-month highs in early August but dropped in the last few days, with falls accelerating Monday. Reuters Reporter Christopher Johnson said this “drop was steeper than expected, raising concerns over the state of Chinese demand and the level of domestic stocks.” Analysts said “Ample supply from big oil exporters, including members of the [Organization of Petroleum Exporting Countries] and the U.S., also encouraged investors to sell long positions bought in July during a period of rising prices.” Hans van Cleef, senior energy economist at Dutch bank ABN Amro in Amsterdam, said, "Those concerns have triggered profit-taking after a strong run-up in July."

At 3:12 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,274.40 Down $13.00
• Silver, $16.74 Down $0.48
• Platinum, $964.30 Down $9.60
• Palladium, $892.30 Down $10.90

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