Slow Dollar Growth Limits Gold Price Gains

Cassie Bastien

8/22/2017 10:07:27 AM

Daily Gold & Silver Market Report – 08/22/2017

Although the U.S. dollar has not made large gains in recent days, it has seen somewhat of a comeback, which has limited the rally in the price of Gold. Moreover, Economic Calendar reporter Tim Clayton said, “European equities rallied strongly which maintained a firm tone surrounding risk conditions which also undermined Gold demand.” The struggling dollar prevented aggressive selling in Precious Metals and curbed demand for safe-haven assets. Though there is not much upcoming news in the market to sway prices or cause volatility, many onlookers are curious if Gold prices will break the $1,300 an ounce mark without some sort of instability.  

“Wait-and-See” Market

Lindsey Bell, investment strategist at CFRA Research in New York, said, “The market is in a little bit of a wait-and-see mode as we go into Jackson Hole at the end of the week,” referencing the annual Economic Policy Symposium held in Wyoming. Investors are awaiting word from Federal Reserve Chair Janet Yellen, scheduled for Friday, as to the expected timing of a final 2017 interest rate hike. With this “wait-and-see” attitude, Reuters Reporter Sruthi Shankar says the Dow Jones industrial average ained more than 100 points (Investing.com). Shankar said, “[Yellen's] speech will be closely watched for a steer on U.S. monetary policy, especially given the persistently low inflation rate…”

Stocks Rise While Political Volatility Cools

As the dollar and U.S. stocks rebounded Tuesday ahead of the Federal Reserve’s annual Economic Policy Symposium in Jackson Hole, Wyo., safe-haven assets including Precious Metals, as well as the Japanese yen and government bonds, retreated. In fact, Bloomberg Reporter Samuel Potter said, “The S&P 500 Index climbed a second day [while] the Stoxx Europe 600 rebounded from the lowest in more than a week as miners led gains.” Investors seem relaxed following recent turmoil between the U.S. and North Korea, as well as terrorist attacks in Europe. And while haven-like assets such as Gold and Silver thrive on volatility, many investors and market watchers are happy to see a quieter week ahead.

At 10:06 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,288.50 Down $5.20
• Silver, $17.06 Down $0.05
• Platinum, $978.10 Down $6.40
• Palladium, $935.80 Down $6.30

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