Gold Holds 5-Month Low as Investors Await Fed Meeting

Cassie Bastien

12/13/2017 9:36:10 AM

Daily Gold & Silver Market Report – 12/13/2017

Spot Gold prices held “near its weakest level in almost five months on Wednesday amid expectations the Federal Reserve would raise interest rates again at the conclusion of its last policy meeting this year,“ according to Reuters Reporter Apeksha Nair. This hike would make three interest rate boosts for 2017 and analysts predict another three for 2018. Higher rates tend to boost the U.S. dollar, making greenback-denominated Gold and Silver more expensive for holders of other currencies. Naeem Aslam, London-based chief market analyst at Think Markets, said, “If the Fed comes out of the gate with more hawkish views on the economy and see inflation improving, it could impact the dollar index. Any further strength in the dollar index would push the Gold price lower.” Meanwhile, other Precious Metals such as Platinum and Palladium were pretty much unaffected by the strength in the dollar.

Future of Precious Metals in 2018

All four Precious Metals have fallen over the past five trading days. Gold values dropped 2.6 percent, Silver prices dropped 3.5 percent, the price of Platinum dropped the most at 6.1 percent andthe  Palladium spot price fell just slightly at 1 percent. According to MarketWatch Reporter Meera Shawn, this was the third-straight week of declines for Gold price charts. Looking ahead to 2018, market analysts say major geopolitical events are expected to change Precious Metal prices. In recent news, President Donald Trump stated the U.S. recognizes Jerusalem as the capital of Israel, which would typically give some boost to Gold. Many investors expect major political events like this to support Gold since it is famous as a safety asset.

Silver Price Could Average Over $17 an Ounce Next Year

Commerzbank analysts believe the price of Silver will average around $17.25 per ounce in 2018. As Silver demand has been lower to close out 2017, ScrapRegister said, “Silver has catch-up potential vs. Gold. The positive economic development is likewise an argument in favor of Silver prices because it means that industrial demand is likely to become even more dynamic,” in addition to its Precious Metal asset. Commerzbank says demand in 2018 for the gray metal is to grow exponentially.  

At 10:36 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,246.70 Up $4.50
• Silver, $15.81 Up $0.07
• Platinum, $876.90 Down $1.80
• Palladium, $1,017.00 Up $3.60

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