Price of Gold Reaches $1,300 Per Ounce

APMEX

1/28/2019 12:22:13 PM

Daily Gold & Silver Market Report – 1/28/2018

• Gold hits a crucial psychological price level. 
• Silver follows Gold, potentially ready for a breakout.
• U.S. Fed monetary policy news expected Wednesday.

Gold bullion prices reached $1,300 per ounce early Monday, reaching a crucial psychological trading threshold. While the yellow Precious Metal has yet to show a clear breakthrough above this level, analysts are optimistic about the movement. The U.S. Federal Reserve is expected to announce policy decisions this week, which has kept potential new investors at bay. Investing.com also points out many are waiting to hear the outcome of trade discussions between China and the United States. Gold has not traded above $1,300 per ounce since June 14, 2018.

When the Fed ends its policy meeting Wednesday, many anticipate a hold on interest rate increases. If no hike is announced, it could mean extra support for Gold, as rising interest rates are more favorable to yield-bearing assets. Looking a few weeks ahead, the current deadline for a trade deal between the U.S. and China is March 1. President Donald Trump has suggested more tariffs on Chinese imports will be leveraged if an agreement cannot be reached. Both countries have a lot at stake, so strategists are hopeful for a firm deal before the deadline.

Silver Follows Gold to Aim for a Breakthrough

Gold moved up to start the week, reaching the critical $1,300 mark during early trading. Silver seemed to follow this movement, resting on the verge of new highs since July. As of 12:20 p.m. (ET), Silver spot prices reached $15.89 per troy ounce. Platinum and Palladium, however, declined Monday morning. According to Yahoo! Finance, very little economic news is expected this week, but a few items may bear significance.

Earnings reports from AT&T, Facebook and U.S. Steel are scheduled this week. While these may not have a direct effect on Precious Metals, any surprise data that negatively impacts the stock market could add to Gold’s recent glimmer. Some consumer confidence reporting is due Tuesday. The most-watched event will be the outcome of the Federal Open Market Committee meetings. Most believe that no rate hike will occur, but investors are often cautious until news becomes official. Friday, the U.S. will release five-year inflation predictions, which could also influence short term investing in Gold and Silver.

At 1:16 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,305.90 Up $4.50
• Silver, $15.83 Up $0.06
• Platinum, $814.50 Down $4.80
• Palladium, $1,335.30 Down $26.50

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.