Silver Spot Could Surge 27%

Cassie Bastien

9/21/2017 12:55:58 PM

Daily Gold & Silver Market Report – 09/21/2017

Since hitting highs above $18 per ounce September 12, Silver prices have fallen 5.3 percent, according to Money Morning Resource Specialist Peter Krauth. He feels this “pullback” is only temporary and thus healthy and, in fact, believes the possibility of Silver prices spiking 27 percent before the end of 2017 is not out of the question. As many would agree, the U.S. dollar’s strength is primarily to blame for the drop in the price of Silver. Now Krauth says if the Dollar Index settles around the 94-96 level, Silver prices could reach $22 per ounce. The dollar is currently pressured, awaiting the Federal Reserve's next move.

Spot Gold Price Charts Drop Below $1,300

Gold prices slumped Thursday to their lowest in three-weeks as investors threw cash into higher-yielding assets “following a hawkish market reaction to the U.S. Federal Reserve's signals on future interest rate hikes,” according to Martin Baccardax with TheStreet. Spot Gold prices dropped 0.4 percent early Thursday morning. Reporter Jan Harvey with Reuters says the price of Gold “has pulled back more than $60 an ounce since hitting its highest in more than a year earlier this month.” Frank Schallenberger, head of commodity research for commercial banking company LBBW, said, “The opportunity cost of holding Gold seems to be going up now, and that's bad news for Gold.” Following its latest two-day policy meeting, the Fed announced it expected one more interest rate increase by the end of 2017 despite a run of soft inflation readings.

• In other Precious Metals, Silver was down 1.2 percent after briefly hitting its lowest since August 25.
• Platinum was 1.1 percent lower, while Palladium was up 0.4 percent an ounce (Reuters.com).

Fed Maintains 2017-18 Rate Plans

Christine Wang with CNBC reported, “The Federal Reserve said Wednesday that it still sees the federal funds rate at 1.4 percent by the end of 2017 ... and maintained its 2018 projection, saying it sees the benchmark rate at 2.1 percent.”The Fed did lower its 2019 outlook, when the benchmark rate is now expected to be 2.7 percent instead of the 2.9 percent originally forecast. How did this affect Gold and other safe-haven assets? Well, commodities are all experiencing downturn trends.

At 1:55 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,295.10 Down $20.50
• Silver, $17.09 Down $0.30
• Platinum, $940.80 Down $5.60
• Palladium, $919.10 Up $2.00

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