Gold Slips But Pointed Toward Weekly Gain

APMEX

1/4/2019 11:15:33 AM

Daily Gold & Silver Market Report – 1/4/2018

• Gold slightly down but on track for a weekly gain.
• Price of Gold remains stable following U.S. jobs news.
• Bitcoin rings in new year with new-found stability.

The price of Gold slipped Friday morning following a six-month peak the previous day. At 8:30 p.m. (ET) Thursday, Gold traded at $1,300.52 per troy ounce, the highest levels since June. Even though spot prices and futures slipped a bit, the Precious Metal is still on track for a third-consecutive weekly gain. In a Reuters report published by CNBC, one London-based Gold dealer observed the yellow metal is looking “slightly overbought at the moment,” which can lead markets to slow down somewhat before the next major milestone.

OANDA Senior Market Analyst Craig Erlam says, “A weaker dollar and low-risk environment are both proving to be very bullish factors for Gold but I feel we may have seen some profit-taking as we near the next big round number.” Erlam goes on to observe the current risk environment does not appear to be improving and U.S. dollar weakness will likely keep going.

China recently released lower-than-expected manufacturing numbers and the Institute for Supply Management showed more moderate activity in U.S. factories, as well. Some investors are hopeful for positive results from the China-U.S. trade talks scheduled to take place in Beijing next week since both countries seem to have undergone a recent hit. When other markets see a setback or experience ongoing volatility, Gold is typically seen as a valuable risk-averse asset.

Gold Stable After U.S. Jobs Report

Friday morning, a stronger-than-expected U.S. jobs report was released, causing the dollar to rise. Gold remained steady following the news, bucking the usual pattern of bullion declines when the dollar strengthens. The Wall Street Journal reports the strong jobs news boosted confidence among investors that the Federal Reserve is unlikely to cut interest rates in the coming year. Much of the recent economic story has been mixed or negative, which has given metals like Gold and Silver a great deal of new support.

Stability for Bitcoin Continues

This week, cryptocurrency markets demonstrated new stability, a welcome contrast to the volatile end of 2018. While Bitcoin was down slightly Friday morning, the world’s leading digital coin was still on track for a weekly gain. Analysts at Hacked, a site dedicated to crypto markets, believe narrowing fluctuation is a signal of perseverance for Bitcoin and others. Their recent article states, “This can also be confirmed by the Bitcoin volatility index, which tracks daily fluctuations in the underlying price over a 30-day or longer timeframe. Since peaking at 5.98% on Dec. 18, the 30-day volatility index has declined to 4.53%.” The anticipation of a planned Bitcoin futures platform by Intercontinental Exchange, along with other upcoming cryptocurrency ventures, is likely the driving force behind the new stability.
At 12:00 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,288.00 Down $7.60
• Silver, $15.85 Up $0.02
• Platinum, $824.70 Up $27.40
• Palladium, $1,313.70 Up $43.40

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