Can The Gold Price Reach $1,600 an Ounce?

Cassie Bastien

5/4/2018 9:40:31 AM

Daily Gold & Silver Market Report – 05/04/2018

In recent news, the Federal Reserve released a statement saying there will be no change in their monetary policy stance. The significance was the Fed emphasizing they are not going to deviate from their gradual rate hike path. Forbes Contributor Naeem Alsam said, “This particular statement pushed the dollar index lower and we saw a higher move in the Gold price yesterday.” As we know, Gold as well as other Precious Metals, acts as a safe-haven commodity during times of market volatility. Even if the Fed does adopt a more hawkish stance, Alsam believes it will not crush Gold prices. Additionally, Alsam mentions if history repeats itself, investors could see spot Gold price rise drastically as the Gold-oil price ratio makes a serious correction.

Dovish Remarks by Federal Reserve Results in Higher Price for Silver

After the Federal Open Market Committee (FOMC) released a statement Thursday saying interest rates will increas gradually, Silver prices rose nearly 1 percent. Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said, “Yesterday’s FOMC meeting didn’t spark much fireworks, but it eased concerns over whether the Fed was going to stick to its gradual tightening policy.” Nicole Rashotte with Investing News said, “These positive remarks about inflation and interest rates are good for Precious Metals Silver and Gold, as they are sensitive to rising U.S. interest rates.” The price of Silver is also supported by geopolitical concerns such as ongoing U.S.-China trade talks and the possibility the U.S. may withdraw from the Iranian nuclear accord.

What is going on in the Stock Market?

Along with many investors and market traders, Bloomberg Editor Robert Burgess says companies are posting their biggest earnings gains in years yet somehow equities can't get any upward momentum. Charts show U.S. stocks are stuck in a bear trap. According to equity strategists at Bloomberg Intelligence, a lack of buying power has left the S&P 500 stuck in an “ominous descending triangle formation” below its 50-day moving average but above its 200-day one.

At 10:40 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,315.20 Up $0.60
• Silver, $16.55 Up $0.05
• Platinum, $907.20  Up $1.20
• Palladium, $967.50 Down $1.20

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