Gold Prices Remain Steady Surrounded by Political Unrest

APMEX

1/16/2019 2:09:18 PM

Daily Gold & Silver Market Report – 1/16/2018

• Gold remains stable amid U.S. government shutdown and Brexit woes.
• Analysts say Bitcoin has yet to reach a bottom.
• Silver faces challenges above $15 per troy ounce.

Wednesday morning, the price of Gold remained stable, building support mainly from political uncertainty. The unrest stemming from the failure of the Brexit proposal, alongside the ongoing U.S. government shutdown, has many investors worried about the global economy. Spot prices for Gold were up slightly, trading at $1,296.70 per troy ounce as of 10:55 a.m. (ET). Gold futures were also stable. Reuters points out although demand for Gold coins seems to have increased, the Precious Metal still struggles to reach the psychologically important mark of $1,300 per ounce. Commerzbank Analyst Carsten Fritsch said, “Stock markets have recovered and the pricing in of the U.S. Federal Reserve rate hike has almost ended. Political uncertainty remains and that does not seem enough to push Gold past $1,300.”

On Tuesday, the Brexit deal orchestrated by British Prime Minister Theresa May was defeated in Parliament. Britain is scheduled to leave the European Union March 29 but with no plans in place to define the country’s ties with the EU, many expect an extension of the deadline. During times of political volatility, Precious Metals such as Gold are known to serve as a conventional low-risk investment. Analyst Bernard Dahdah was also quoted in the Reuters report, saying “The impact of Brexit hasn’t been as large on the price of Gold as people thought it would be. It’s the dollar that’s still the main driver behind the prices of Gold.” Silver, Platinum and Palladium prices all saw lifts early Wednesday.

Analysts Say Bitcoin Yet to Hit Bottom

Bitcoin traded higher Wednesday, hovering around $3,500. After a notable tumble in November, the world’s most popular cryptocurrency has yet to see a significant rally. A MarketWatch report states some analysts feel Bitcoin is showing signs of additional losses. Analyst Jani Ziedens says in the article, “Bitcoin continues to struggle and is in the mid-$3ks. If prices were oversold, we would have bounced by now. This lethargic base tells us that demand is still incredibly weak and this selloff still hasn’t found a bottom.” Altcoins Ether and Litecoin were also trading up.

Silver Faces Resistance Above $15

Because Silver is the denominator of the Gold-to-Silver ratio, the technical outlook is essential to watch. In a recent analysis published on SeekingAlpha, analyst Christopher Aaron points out Silver may now be facing “five-fold technical resistance.” Last week, Silver prices underperformed Gold, finishing 0.8 percent down. Aaron believes “the target for Silver’s short-term break above $15.00 is $16.00 exactly, measured as equal to the amplitude of the previous September – November consolidation between $14.00 and $15.00 ($1.00) and added onto the breakout point.”

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

• Gold, $1,295.50 Up $4.60
• Silver, $15.67 Up $0.00
• Platinum, $809.30 Up $9.20
• Palladium, $1,364.30 Up $42.20

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (ET)! Or call us Fridays until 6 p.m. (ET)! If you have any questions about Precious Metals investing or simply would prefer to place your order by telephone, we are here to help.