Palladium Hits 16-Year Peak, Gold Prices Jump on Fed News

Cassie Bastien

8/17/2017 1:21:28 PM

Daily Gold & Silver Market Report – 08/17/2017

Gold prices rose for a second-straight day after the Federal Reserve hinted U.S. interest rates could rise more slowly than previously anticipated. Furthermore, Palladium climbed to its highest price since February 2001 due to a strong industrial metals market, according to Peter Hobson with Reuters.com. “The minutes of the Fed's July 25-26 policy meeting showed some policymakers wished to halt further rate increases until it is clear the trend of soft inflation is transitory.” Hobson said with this new information, the U.S. dollar and bond yields fell but have since recouped some losses. Commerzbank Analyst Carsten Fritsch said, “Demand for Gold as a safe haven also resurfaced after South Korea warned North Korea against “crossing a red line” and the United States said it would go ahead with joint military drills despite pressure from China.”

Silver Rebounds with Political Heat in Washington

Discord in Washington regarding North American Free Trade Agreement (NAFTA) negotiations caused Precious Metals such as Silver to rise on safe-haven demand. After taking a hit Tuesday due to a stronger dollar, the gray metal regained its net position above the $17 per ounce range. Economic Calendar Reporter Sam Bourgi said, “U.S. President Donald Trump announced on Wednesday that he has disbanded his business advisory groups after two more CEOs opted out. The departures stem from the president’s comments regarding the violence in Charlottesville, VA.” According to Canadian Foreign Minister Chrystia Freeland, the U.S. has taken a hard line approach for renegotiating NAFTA. Bourgi noted, “President Trump’s top trade adviser Robert Lighthizer has made it clear that the administration is not interested in “a mere tweaking” of NAFTA, but more so a full-fledged re-write that will allow the U.S. to cut its trade deficits with Canada and Mexico.” Although the first round of talks conclude Friday, more work is needed prior to an agreement being reached anytime soon.

At 2:21 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,288.90 Up $8.90
• Silver, $17.13 Up $0.09
• Platinum, $977.90 Up $4.40
• Palladium, $930.30 Up $16.10

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