Prices of Silver Continues to Trade Lower

Cassie Bastien

5/21/2018 9:40:13 AM

Daily Gold & Silver Market Report – 05/21/2018

Many market analysts predict if the price of Gold continues to drop, the confluence of support at Silver’s feet may soon break. DailyFX Market Analyst Paul Robinson said, Silver spot “looks likely to break, though, especially with Gold having a good distance to go before making good on an extended move from its recent range-break.” Nonetheless, charts show the long-term trend-line is near lows around $15.60 for an ounce of Silver, but this week could provide insight as to whether Silver prices will rise again.

Gold Spot Prices Drop to 5-Month Low

The U.S. dollar rose and demand for safe-haven assets eased after U.S. Treasury Secretary Steven Mnuchin said a trade war between China and the United States was “on hold”, causing the price of Gold to drop to five-month lows. Naeem Aslam, chief markets analyst at Think Markets, said, “Gold price is under pressure as the dollar maintains its strength.” As we have seen before, a stronger U.S. dollar makes dollar-denominated Gold more expensive for holders using other currencies. Furthermore, rising U.S. interest rates and the expectation the Federal Reserve will raise rates again next month limits demand for non-yielding bullion such as Gold. Many Precious Metals investors will be looking toward the biggest event of this week, the Federal Open Market Committee minutes. If the Fed doesn't tame its hawkish stance, buyers and traders would expect more weakness in the Gold price (Reuters.com).

Bitcoin Prices on the Rise

Over the past 24 hours, digital currency markets have rebounded as the Bitcoin price reached $8,500. In fact, Bitcoin recently recorded a 4 percent rise against the U.S. dollar, according to CCN. Regardless, it is no surprise the value of Bitcoin has been on a downtrend since its failure to reach $10,000. However, with recent price charts showing a potential rise in cryptocurrency prices, many online investors are eagerly awaiting a price rally for all digital currencies.

At 10:40 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,291.00 Down $3.50
• Silver, $16.55 Up $0.02
• Platinum, $889.00 Up $0.00
• Palladium, $979.90 Up $11.70

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