Gold Targets Rebound After Sizeable Daily Drop

APMEX

1/7/2019 10:17:43 AM

Daily Gold & Silver Market Report – 1/7/2018

• Gold seems ready for a rebound after Friday's losses.
• Palladium price reaches new record high.
• Trade and interest rate data scheduled for release this week.

Gold futures traded higher Monday morning following Friday’s significant decline. The drop last week was the biggest single-session slip in two weeks, according to a report published by MarketWatch. Some analysts took the downturn for Gold as a signal of economic resilience in the United States. Some analysts still expect volatility in global markets this year and continue to forecast gains for all Precious Metals. Many investors have become risk-averse in recent weeks, as stock markets have been shaky. These growing concerns have garnered new support for Gold bullion, known to many as a safe haven when financial markets become unstable.

Friday's losses for Gold were likely driven by a release of U.S. jobs data, which was more promising than anticipated. The news showed total employment gains in 2018 at a three-year high. Federal Reserve Chair Jerome Powell also made a statement Friday that the U.S. central bank will take steps toward normalizing interest-rate policy that pays closer attention to market instability as hikes occur.

Palladium Prices Hit Record High

The price of Palladium reached an all-time high Monday at $1,313.24 per troy ounce. As CNBC reported, this movement meant that, once again, Palladium traded at a premium to Gold, a rare event in the marketplace. Much of the support stems from a short supply of the Precious Metal and positive forecasts for fuel cell automobile production in the coming year. Palladium is used in catalytic converters by many carmakers to reduce carbon emissions. Platinum prices also gained momentum in early trading, hitting $831.10 per ounce, the highest value seen in over a month.

Upcoming Trade News Could Affect Gold Prices

Precious Metals, especially Gold, tend to be very affected by interest rates as rising rates increase the opportunity cost of owning non-yielding assets like bullion. According to a weekly outlook published by Investing.com, several meetings and announcements scheduled this week could help determine whether Gold will see a rally in the coming weeks. The U.S., Canada and Australia are all expected to release trade figures Tuesday. Wednesday, the Bank of Canada will issue its newest interest rate decision and also publish a new rate statement while the U.S. Federal Reserve will publish their December meeting minutes. To round out the week, Powell will speak at the Economic Club of Washington Thursday, followed by U.S. inflation data to be released Friday.
At  11:15 a.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,290.80 Up $3.80
• Silver, $15.77 Down $0.05
• Platinum, $824.90 Down $0.30
• Palladium, $1,299.80 Down $1.60

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