New Fed Chairman Powell Deemed Good for Gold Prices

Cassie Bastien

11/1/2017 10:20:32 AM

Daily Gold & Silver Market Report – 11/01/2017

We have all watched Precious Metal prices drop in recent days. However, Keith Weiner with SeekingAlpha said a report came out mentioning Jerome Powell, currently on the Board of Governors of the Federal Reserve, is now in the number one spot to receive the title as the new Fed Chair, replacing Janet Yellen. So why does any of this matter? Weiner says it is good for safe-haven assets such as Gold and Silver prices! In fact, many market watchers agree that “Powell is deemed good for Gold.”

Oil Prices Hit Highest Since 2015

After oil prices hit their highest since mid-2015 with data showing the Organization of Petroleum Exporting Countries has significantly improved compliance with pledged supply cuts, reports say world stock markets also jumped to record highs Wednesday. Why did this spike happen? Reuters says it “came ahead of a U.S. Federal Reserve meeting, which is expected to signal a third rise in borrowing costs before the end of the year, and of a further flurry of earnings results that include Facebook.” Reporter Dhara Ranasinghe said the stock markets in London and Paris both climbed 0.2-0.4 percent while U.S. stock market futures pointed to another strong session. Ranasinghe said, “The combination of robust economic and corporate earnings growth from the third quarter is giving the long-running bull market a new lease of life.”

U.S. Dollar Steadies with Talk of Fed Decision

A report from Business Line says the Federal Reserve is expected to leave interest rates unchanged in Wednesday's meeting. Although the possibility of an interest rate increase now is next to nothing, commodities investors will watch for new clues regarding next month's predicted interest rate hike, as well as the plan for 2018. With this, the report shows “the dollar index, which tracks the greenback against a basket of six major rivals, added 0.1 percent.” Investors will also search for further information about who will be named the next Fed Chair starting early February. President Donald Trump is expected to announce his decision Thursday.

At 11:19 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,280.40 Up $8.30
• Silver, $17.25 Up $0.49
• Platinum, $937.90 Up $17.30
• Palladium, $1,004.60 Up $17.40

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