Gold Prepares for Weekly Decline

APMEX

12/14/2018 1:58:43 PM

Daily Gold & Silver Market Report – 12/14/2018

• Gold price on track to decline for the week. 
• Palladium sees three days of gains. 
• Bitcoin could dip below $3,000 soon.

This week, Gold prices have slipped, with a 0.8 percent decrease as of Friday morning. This ebb puts the yellow Precious Metal on track for an overall weekly decline, potentially the biggest of the last five weeks. These lower spot prices come just ahead of the looming Federal Reserve interest rate decisions in the coming week. Gold futures were also down in early trading. According to Reuters, the U.S. dollar gained late in the week, driven by jitters regarding China’s economy, as well as losses for the euro and the British pound. Ross Strachan, an analyst at Capital Economics, told Reuters, “It seems to be a broader market sentiment as there is a drop across the Precious complex ... The dollar has strengthened and that’s being reflected in Gold’s downward movement.”
All of this could change, however, as market watchers anticipate the Federal Open Market Committee meeting beginning December 18 where the U.S. central bank will likely announce the fourth interest rate hike of 2018. Since April, spot prices for Gold have primarily fallen, influenced by a strong dollar and international trade disputes. While many analysts forecast a down year for Gold, they are also hopeful for 2019, especially in the latter half. Brexit, along with a potential economic slowdown in the U.S., could lead to widespread interest in safe-haven assets like Precious Metal.

Palladium Tops Commodities Markets for Three Straight Days

Last week, Palladium spot prices beat those of Gold for the first time in more than 15 years. While it has not consistently maintained that lead this week, Palladium prices have exceeded those of Gold for most of the last three days. The New York Times points to “economic shifts, antipollution legislation, union campaigns by mine workers and global trade negotiations,” as the primary influencers for this movement. The manufacturing of catalytic converters in fuel-cell vehicles consumes 80 percent of the world’s Palladium supply each year. Because of the record wins, analysts consider this Precious Metal one of the best-performing commodities this year, with prices escalating more than 50 percent in the past four months alone. Many industry experts expect prices to remain high, as current production cannot meet the upcoming demand from the automobile industry.

Back-to-Back Losses for Bitcoin Extend Crypto Slump

Yesterday, the world’s most famous cryptocurrency, Bitcoin, experienced significant losses, declining to $3,200. This dive is a 15-month low price for Bitcoin, which could experience its second-straight week of downturn. Some analysts suggest it may soon dip even further. Analyst Nick Cawley wrote, “Bitcoin looks set to fall below $3,000 in the short-term with the $2,970 Sept. 15, 2017, swing-low the next target. Below here, horizontal support at $1,760 off the July 18 low comes into play in the longer-term,” as quoted by MarketWatch.
This year has not been kind to Bitcoin and these extreme losses have extended to a general slump for all cryptocurrencies. The collective value of all cryptocurrencies has declined to $104.8 billion, according to numbers from CoinMarketCap. Some popular crypto coins, such as Ether and Litecoin, had slight gains Friday morning, while others declined.

At 2:55 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,241.10 Down $4.90
• Silver, $14.67  Down $0.21
• Platinum, $790.30  Down $10.20
• Palladium, $1,237.90 Down $22.80

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