Gold Drops Again

Cassie Bastien

10/11/2017 10:50:53 AM

Daily Gold & Silver Market Report – 10/11/2017

Gold price gains were limited, as investors expected, as many await results from the September Federal Open Market Committee meeting, scheduled to be released at 2 p.m. (ET) Wednesday. Mark Decambre with MarketWatch said, “Although a recent parade of [Federal Reserve] speakers will likely make the minutes less significant, metal traders will look for further clues on how the U.S. central bank is thinking about sluggish inflation and wage growth and the pace of future rates hikes.” So what does this have to do with the price of Gold? Decambre explained, “A commitment to raising rates and hints that the Fed views underestimating tepid inflation could further lift the U.S. dollar and place downward pressure on assets linked to the currency,” such as Gold and Silver. Precious Metal prices are less appealing to investors in comparison to richer-yielding assets when a strong dollar exists. Although if commodities do not react to Wednesday's news, Gold and Silver prices could hold steady with help from geopolitical risks, such as tensions between the U.S. and North Korea and the current instability in the European Union surrounding unrest of Catalonia.

Palladium Beats Platinum Prices 

Palladium is experiencing a rare moment of being more expensive that Platinum. Business Day Reporter Allan Seccombe said, “In the latest Commodities Compendium from Macquarie Research, analysts noted this was only the third time that the price of Palladium had overtaken that of Platinum since 1931 and 2001.” Palladium is used to make autocatalysts for gas-powered engines and remains a focus of South African miners. However, many are curious as to how long this will last with recent advances in electric-powered vehicles. Platinum carries incentives aside from just automotive catalysts such as jewelry, whereas Palladium does not carry much of a demand for anything other than gas-powered vehicles and the Precious Metal value (BusinessDay.com).

At 11:51 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,290.60 Down $3.40
• Silver, $17.19  Down $0.08
• Platinum, $933.60  Down $1.90
• Palladium, $958.60 Up $20.00

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.