Gold Price Rebound

Cassie Bastien

3/2/2018 10:34:05 AM

Daily Gold & Silver Market Report – 03/02/2018

The U.S. dollar eased on fears of an imminent trade war following President Donald Trump's decision to impose steep tariffs on imported steel and aluminum, causing the price of Gold to regain strength early Friday morning. In fact, spot prices dropped to their lowest since January 2 to around $1,302 an ounce Thursday with speculations of further interest rate hikes set for 2018. Since then, the Gold price trend has regained approximately 0.1 percent. INTL FCStone Analyst Edward Meir said in a note, “The U.S. imposed trade tariffs and those that come back our way in the form of retaliation should be net negative for the dollar and could conceivably provide Gold with some support.” Reuters Eileen Soreng further explained, noting, ”The Trump administration said the tariffs would protect U.S. industry, but the dollar and Wall Street shares slumped as the plan sparked fears of a trade war and worries about its potentially negative impact on the world's largest economy.” In other Precious Metals, Silver was down 0.3 percent at $16.41 an ounce after touching its lowest in over two months at $16.16 in the previous session. Platinum prices were 0.3 percent lower at $963.40 per ounce after falling to their lowest since January 4 at $950.50 Thursday.

Spot Palladium Price Drop

Did anyone happen to notice the price of Palladium dropped significantly Thursday? Market Watch Reporters Myra P. Saefong and Rachel Koning Beals said the price of Palladium per ounce dropped 6.2 percent to $973.20 an ounce, “the lowest finish in nearly three weeks.” Why did this happen? The report explained Palladium, as well as Platinum, prices declined due to a German court ruling cities have the right to ban diesel motors to improve air quality. Both Precious Metals are used in the automotive industry, as well as tangible safe-haven assets by investors. Therefore, many traders and investors took advantage of the price dip in hopes a price rally for Palladium and Platinum prices is in the near future with helps from supply and demand.  

Silver Spot Investments

It is no secret the Silver metal market took a dip Thursday with help from a strengthening dollar. But many investors are confident that Silver spot price at $16.20 an ounce is showing support and will soon rise, if you are patient enough, said FXEmpire Christopher Lewis. Moreover, many investors are buying Silver while it is still “cheap” so when that spot price spike happens, Silver investors will gain on the demand for the multi-purpose Precious Metal. Although it could take some time, Lewis says physical Silver could reach $20 an ounce and may even work its way to $50 an ounce. However, as we all know, volatility is here to stay. Therefore, Silver buyers are purchasing Precious Metals for that long-term investment.

At 11:34 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,323.00 Up $16.30
• Silver, $16.57 Up $0.22
• Platinum, $968.60  Up $8.80
• Palladium, $994.80 Up $12.60

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