The Price of Gold, Silver Starts to Ease

Cassie Bastien

8/31/2017 10:28:09 AM

Daily Gold & Silver Market Report – 08/31/2017

Precious Metal prices failed to hold their rally early Thursday morning as the dollar gained following positive data from China and the U.S., though Gold managed to hold above $1,300 an ounce with the help from ongoing tension surrounding North Korea. Senior market analyst at OANDA Jeffrey Halley said, “Gold will be somewhat at the mercy of random month-end U.S. dollar flows today, with the technical picture still constructive as long as the $1,284 [per ounce] support holds.” Nonetheless, Reuters Reporter Arpan Varghese said, “The Commerce Department said its second estimate of U.S. gross domestic product showed that it increased at a 3.0 percent annual rate in the second quarter, its quickest pace in more than two years.” In other news, the ADP National Employment Report showed U.S. private-sector employers added 237,000 jobs in August, the largest monthly increase in five months. With little support from geopolitical tensions, Gold and Silver values are not expected to remain too strong and many investors feel prices will slowly lower in the fourth quarter given the possibility of a final interest rate hike for 2017 by the Federal Reserve.

Will 2018 be a Better Year for Silver Prices?

Forecaster and Analyst Hubert Moolman feels higher Silver prices are expected next year simply based on the amount of U.S. paper money relative to the price of Silver. According to Moolman, “When you look at the Silver price, relative to U.S. currency, the amount of actual U.S. dollars in existence, then it is at its lowest value it has ever been.” He notes that Silver’s price of $17 per troy ounce is 34 percent of the gray metal’s all-time high of $50, hit in 1980. If Moolman’s predictions are correct, he says, “The U.S. monetary base is currently around $3.946 trillion. Therefore, if Silver today was at its 1980 value, relative to the monetary base, it would be around $1,424 [per troy ounce].”

At 11:28 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,319.50 Up $8.00
• Silver, $17.64 Up $0.12
• Platinum, $998.00 Up $3.80
• Palladium, $936.90 Down $0.20

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