Dollar Index Down as Gold Gains

APMEX

9/7/2018 9:42:24 AM

Daily Gold & Silver Market Report – 09/07/2018
The price of Gold climbed higher Thursday, motivated by a weakening U.S. dollar. Short covering and increased buying in Asia also contributed to the increase. Quoted in a report published by Reuters, Chris Gaffney said “We’re seeing a little bit of a relief rally for Precious Metals." Gaffney is the president of world markets for TIAA Bank. “I don’t expect a sharp move from either gold or the dollar. I think we’ll be stuck here for a little while, barring any major event,” he also noted.

Spot Gold prices gained 0.3 percent on Thursday, after increasing in the previous session, as well. The report also predicted that the U.S. dollar might be very close to reaching a peak, while Gold appears to be nearing a bottom.

Gold futures for December were also up in the U.S., ending at $1,204.30 per ounce. Since April, Gold has fallen over 12 percent, but the bargain prices have finally led to an increased interest in buying. This new lift holds true for much of Southeast Asia, and other countries where Gold buying has a long history of popularity, like India and China. Imports of Gold to India increased substantially in August, to levels that had not been seen for more than a year. The Chinese yuan became weaker against the dollar on Thursday in spite of the fact that the dollar index was down overall.

Precious Metals Prices Mixed as World Braces for Imminent Tariffs

While Gold prices had some upward movement on Thursday, overall, Precious Metals markets were mixed as the U.S.-China trade war blazes forward. While the weakening dollar contributed to the boost for Gold, any significant movement was stifled by predictions that the Federal Reserve will raise interest rates again soon, potentially within the next three weeks. As noted by Investing.com, when interest rates are on the rise, market demand for Gold typically weakens, “as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds,” according to the report. Silver futures lost 0.18% on Thursday, while Platinum futures went up to $791.20.

Bitcoin Plunges 20 Percent Over Two Days

Investors in Bitcoin were dealt a heavy blow this week, as prices fell more than 20% in the last two days. Other popular cryptocurrencies, such as Litecoin and Ethereum also saw similarly significant falls. These declines may be due to recent rumors that Goldman Sachs is canceling plans to develop a cryptocurrency trading desk. As reported on CNNMoney, management at Goldman Sachs told the news outlet that it had not made a final decision about Bitcoin or any other digital currency.

In an official statement quoted on the site, Goldman Sachs stated "In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering.” After growing to the $20,000 mark in December 2017, the price of Bitcoin has lost more than two-thirds of its value, trading late this week at approximately $6,400. Analysts suggest that this volatility may be the most compelling reason that Goldman Sachs is taking only cautious steps toward involvement with cryptocurrency.

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

• Gold, $1,199.40  Down $1.90
• Silver, $14.31  Up $0.08
• Platinum, $784.00  Down $9.90
• Palladium, $991.10 Up $10.00

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