North Korea Threatens Nuclear Bomb

Cassie Bastien

9/22/2017 12:48:19 PM

Daily Gold & Silver Market Report – 09/22/2017

The U.S and North Korea have gone back-and-forth for a few months now, which has raised concerns within the commodities market. Recently, North Korea threatened yet another nuclear test, involving a hydrogen bomb, aimed toward the Pacific Ocean. However, commodities including the Precious Metals market did not react quite how analyst would think, with only a slight increase in price charts. According to DailyFX research, “With U.S. yields dropping on safety demand, the U.S. dollar is trading slightly lower for the second consecutive day ahead of the U.S. cash equity open,” which has been positive for safe-haven assets such as Gold and Silver. The problem is many do not feel this support will last and investors are becoming somewhat numb to volatility.

The Price of Silver Remains Weak

With help from the Federal Reserve’s latest meeting, the price of Silver has experienced a steady downtrend as the U.S. dollar regained strength. Nonetheless, a report from SeekingAlpha says, “short-term price movements in Gold and Silver are not dependent upon their (eventual) monetary value.” After much review, market watchers see Silver prices will most likely continue this downtrend until proven otherwise, but only time will tell.

Gold Prices on Track for Worst Weekly Decline

Although the price of Gold saw some minor increases Friday with the help from tension surrounding North Korea, the yellow metal is still on pace for its worst weekly decline since early July, according to MarketWatch Reporters Myra Saefong and Mark Decambre. “Late Thursday, North Korean officials threatened to test a hydrogen bomb over the Pacific Ocean, escalating tensions in the Korean Peninsula.” A report from FactSet showed Gold futures are on pace to log a 2.3 percent weekly decline, its worst weekly fall, and second straight weekly drop, since the period ended July 7. Spot Gold prices have been under pressure since the Federal Reserve’s policy meeting ended Wednesday when it was confirmed another interest rate increase was still in the books for 2017. Such increases tend to make Gold bullion less attractive compared to other assets with rising yields.

At 1:47 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,297.40 Up $3.40
• Silver, $17.04 Down $0.03
• Platinum, $933.90 Down $8.00
• Palladium, $925.30 Up $6.70

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