Gold Prices Stay Near Multi-Month Highs

APMEX

10/17/2018 10:53:52 AM

Daily Gold & Silver Market Report – 10/17/2018

• Gold holds stable near recent high levels.
• The bullish Gold market could signal new hope for Silver.
• Despite Bitcoin price correction, more volatility ahead.

The price of Gold stayed relatively unchanged Wednesday morning. Comex Gold futures were up 50 cents at 9:05 a.m. (ET), incredibly close to a recent high mark of $1,236.90 reached Monday. Spot prices were also up slightly but have since settled at $1,229.70 per ounce. In late September, the Federal Reserve hiked interest rates by a quarter of a point, the third increase in 2018. Investors anticipate the release of the latest Fed policy meeting minutes , hoping to uncover details about U.S. monetary policy in the months ahead. According to the Investing.com Fed Rate Monitor tool, there is an 83 percent chance the Federal Reserve will raise interest rates again in December, even if trade negotiations with China remain tense.

Bullish Gold Price Could Mean Silver is Next

For several weeks, the price of Gold has climbed, trading at a 3 percent increase in the last two weeks along. According to a forecast on Money Morning, Resource Specialist Peter Krauth suggests this could prime the market to support Silver in the coming months. He expects market unrest to challenge the U.S. dollar, leading to a rally for both metals that shrinks the Gold/Silver ratio. As observed in the article, after a few days of volatility, Silver saw growth Thursday and held onto most of its strength Friday, trading at $14.58 per ounce at the close. This week, continued pressure on the U.S. dollar has led to more growth for Silver, and Krauth predicts this trend will likely continue.

Bitcoin Price Correction Nearly Complete, More Volatility Ahead

After Bitcoin saw a substantial drop earlier this year, many economists took it as a sign that interest in the cryptocurrency was done. However, other market watchers continue to see Bitcoin as a serious player in financial markets. According to Seeking Alpha, cryptocurrency behavior functions differently than traditional commodities because feelings about Bitcoin are so mixed within the financial sector. In the report, Research Analyst and Hedge Fund Manager Brian Fletcher said, “Philosophically, the opinions of how cryptocurrencies like Bitcoin will play a role in the financial markets vary from those who believe they are destined to fail, to the polar opposite belief that they'll replace fiat currencies in the future. The disparity between these polar opposite views creates huge volatility and represents the heart and soul of investor sentiment.”

At 11:29 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,229.70 Down $0.60
• Silver, $14.78 Up $0.02
• Platinum, $840.00 Down $$6.70
• Palladium, $1,77.10 Down $6.80

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