Gold Prices Drop Below $1,300 Per Ounce

APMEX

6/13/2018 9:47:45 AM

Daily Gold & Silver Market Report – 06/13/2018

As the Federal Reserve began a two-day meeting to discuss raising interest rates, Gold prices dipped below the important $1,300 per ounce threshold. Gold futures on the COMEX division of the New York Mercantile Exchange fell to $1,298.80 an ounce Tuesday, a dip of 0.34 percent. Most market watchers expect the Fed to increase interest rates Wednesday, which will likely cause further changes to Gold prices.

When interest rates rise, demand for Gold tends to weaken as investors turn to interest-bearing options like bonds. After the Fed met in March, many expected the central bank to raise rates only three times during 2018, but data released in the over the last three months has led analysts to predict another rate hike this week. (Investing.com)

Global Platinum Deficit Expected for 2018

Following reports last month that demand for Platinum is growing in China’s automobile industry, India’s Platinum Guild predicted the jewelry industry will also see a 25 percent rise in demand. FXStreet reports that currently, the global jewelry industry accounts for 28 percent of demand, while the transportation sector requires 42 percent of the annual supply. Even with notable changes in direction by car manufacturers such as Volkswagen to reduce production of diesel-powered vehicles, demand grew by 2 percent in 2017.

Forecasts indicate the world Platinum deficit will increase for the fifth-consecutive year. Another contributor to supply limitations is ongoing internal trouble at several of South Africa’s largest mining companies. This year, worldwide demand for Platinum Group Metals is expected to reach 280,000 ounces, an increase of 53,000 ounces over 2017.

Bitcoin Price Sees Big Swings, Big Milestones

This past weekend, Bitcoin saw some of the most significant price swings in the history of the cryptocurrency. Since December, when Bitcoin saw an all-time high value of nearly $20,000, most changes to Bitcoin value occurred during weekends. Many weekends during the first half of 2018 have seen price moves of up to 5 percent, per a report published by CNBC. 

Due to limited banking hours on weekends, many investors find it difficult to profit from price swings that sometimes occur late Saturday night. Overall, 24-hour trading volume in Bitcoin has taken a 60 percent drop during 2018. Because 28 percent of all Bitcoin is held by only 1,600 accounts, or wallets, a large sale from one account holder has a major influence over market prices. Some believe that a Bitcoin “whale” placed a substantial sell order this weekend, leading to the drastic changes in price.

At 10:45 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,299.40 Up $1.20
• Silver, $17.05 Up $0.10
• Platinum, $902.50 Down $2.10
• Palladium, $1,015.30 Down $8.00

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