Must-Own Commodities in 2018

Cassie Bastien

2/21/2018 10:52:03 AM

Daily Gold & Silver Market Report – 02/21/2018

A report by ETF Daily News examines why commodities are the go-to for the 2018 investor. Even those only somewhat familiar with stocks likely were shocked by the February 5 drop. The S&P 500 was down 4.1 percent – its worst fall in 6 1/2 years. Thus, equity investors quickly shifted holdings into safe havens such as bonds and Precious Metals. With that, many traders and investors are sure we are entering a bull market, which could potentially last several years. Wondering why this is? The report lists five reasons, saying inflation, a weak U.S. dollar, strong economic growth, undervalued commodities and a tight supply are the main drivers to this bull market for haven assets such as Gold and Silver.

Gold Records Steepest Drop in 1 1/2 Years

Did you notice the massive drop Tuesday for the Gold price? We sure did! MarketWatch Markets Reporters Barbara Kollmeyer and Mark Decambre say the Precious Metals commodity booked “its sharpest daily decline in more than a year, against a backdrop of a strengthening dollar and stabilizing equities. ... A weaker dollar can boost commodities priced in dollars, because it makes them cheaper to buy for holders and investors of other currencies,” especially tangible assets such as Gold and Silver. But following last week’s sharp decline, the ICE Dollar Index DXY, +0.10%  was up 0.6 percent to 89.724, as the dollar gained against the euro, pound and yen. As the yellow metal begins to make its comeback Wednesday, many investors remain skeptical but are enjoying the positive volatility within the Precious Metals market.

Two Interest Rate Hikes for 2018

Philadelphia Federal Reserve Bank President Patrick Harker said Wednesday two interest rate hikes this year is “likely appropriate,” but signaled he is open to more if needed. “I’ve penciled in two hikes for 2018,” Harker said in remarks prepared for delivery at Saint Louis University in St. Louis, Missouri. “I use pencil because the data can change, and sometimes they don’t accurately point to future events.” A report by Reuters says the Fed is expected to raise interest rates next month. Sticking to plans earlier in the year, Harker expects the U.S. economy to grow 2.5 percent this year before slowing to 2 percent growth next year and below 2 percent in 2020, according to Reuters.

At 11:52 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,330.80 Down $0.60
• Silver, $16.73 Up $0.16
• Platinum, $1,000.80  Down $5.20
• Palladium, $1,033.30  Down $1.80

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.