Silver Prices Begin Recovery

Wayne Lin

8/29/2018 10:11:43 AM

Daily Gold & Silver Market Report – 08/29/2018

The price of Silver has been stable this week, as it continues to rebound from recent lows. As pointed out in Money Morning, Silver seems to have formed a new, higher low following a brief plateau. Last week, at a meeting of central bankers in Jackson Hole, Wyoming, Federal Reserve Chair Jerome Powell echoed earlier statements about plans to further increase interest rates, which has caused mild volatility in dollar strength. President Donald Trump's negative comments on interest rate hikes alongside news regarding the newly inked trade deal between the United States and Mexico have challenged the U.S. currency even further. Despite these events, and after reaching two bottoms in the last two weeks, the price of Silver continues to bounce back.

Gold Prices Up Despite Possible Rate Hikes

Spot prices for Gold went up in early international trading Wednesday, as many investment funds expected new short-term support at $1,200 per ounce. However, a slightly stronger dollar and the strong possibility of an increase to U.S. interest rates kept gains to the price of Gold at a minimum. In a release from Reuters, economists consider the $1,200 per ounce Gold price to be psychologically important to investors. For the first time since early 2017, the Gold price sunk below this mark, reaching a low of $1,159.96 per ounce. Saxo Bank Analyst Ole Hansen observed, “Gold is a tad higher now because we have managed to find support at $1,200 and that is attracting some intra-day bids at this stage.”

Gold is still being challenged by a strong U.S. dollar, although this strength is currently under pressure from the turbulent trade climate. The dollar did see some new power as the U.S.-Mexico trade deal gave investors confidence, although concern over the trade war with China continues. Adding to the complications is the ongoing possibility of U.S. interest rate hikes, leading analysts to bet on commodities prices falling and a surge of liquidations in exchange-traded funds.

Bitcoin Prices Grow to Over $7,000

Even after the recent rejection of nine distinct proposals for Bitcoin ETFs last week by the U.S. Securities and Exchange Commission, the price of Bitcoin extended once again over the $7,000 point. According to an analysis in Forbes, this price jump led a pack of increases in the value of several significant cryptocurrencies last week. This lift follows an ongoing trend of the entire crypto market falling in line with whatever happens to Bitcoin, the well-known industry leader. While a number of traders have been obsessed with Bitcoin short positions of late, the trend of betting on when the cryptocurrency will fall in value seems to be shifting. The price of Bitcoin has been looming in the $7,000 range since May after a significant sell-off at the beginning of 2018, which sunk prices down nearly 70 percent after record highs in December 2017.

At 11:10 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,205.50 Down $5.10
• Silver, $14.77 Down $0.14
• Platinum, $795.80 Down $2.50
• Palladium, $959.20 Up $5.80

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