Precious Metal Prices Surge after Yellen Speech

Cassie Bastien

8/28/2017 3:34:42 PM

Daily Gold & Silver Market Report – 08/28/2017

After Federal Reserve Chair Janet Yellen bypassed mentioning monetary policy in her speech at the Economy Policy Symposium in Jackson Hole, Wyo., Precious Metal prices rose. Gold rose by 0.2 percent, according to Reuters, with Silver rising 0.3 percent. In the speech, Yellen made no reference to U.S. monetary policy, instead focusing on financial regulations, which led traders and investors to expect slower movement for interest rate hikes. OCBC Bank Analyst Barnabas Gan said, “Gold prices could breach $1,300 per ounce this week should safe haven demand stay supported on Trump's threat to quit [the North American Free Trade Agreement] amid North Korean tensions.”

• Among other Precious Metals, Platinum rose 0.4 percent, while Palladium slipped 0.1 percent (Reuters.com). 

Three Factors to Drive the Value of Gold

Exante Data Founder Jens Nordvig believes there are three main macroeconomic trends behind Gold's rally. “It's the low-yield environment, the trend of the dollar and strong growth in emerging markets,” Nordvig told CNBC's "Futures Now" Thursday. “Those three things together are some of the things that have underpinned the Gold rally, and they're still here.” Furthermore, many investors feel tensions in Washington have contributed to the price of Gold. With Gold prices near $1,300 an ounce, many feel a bit of hope for a possible rally within the yellow metal and maybe even other Precious Metals (CNBC.com).

Hurricane Harvey Causes Oil Prices to Drop

FX Empire Reporter David Becker says due to the massive amount of rainfall from Hurricane Harvey, crude oil prices tumbled almost 2.5 percent earlier Monday. “The gulf coast near Houston, Tex., is the largest producer of Jet fuel in the United States, and the lack of refinery operations is putting downward pressure on oil prices,” Becker said. This has been offset with the current rally in gasoline caused by the lack of production of products pressuring crude oil prices.

At 4:34 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,313.10 Up $18.00
• Silver, $17.55 Up $0.40
• Platinum, $991.50 Up $13.40
• Palladium, $939.50 Up $5.50

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