Gold Prices Diminish As Remarks from Fed Chair Expected

APMEX

2/6/2019 11:02:32 AM

Daily Gold & Silver Market Report – 2/6/2019

• Gold prices slip as market awaits new statements from the Fed.
• Mining association predicts a 7 percent price lift for Silver in 2019.
• Weaker rand helps lower costs for South African Platinum miners.

The price of Gold slid downward Wednesday morning as investors await comments from U.S. Federal Reserve Chair Jerome Powell. Wednesday evening, he is expected to offer an opening statement and answer questions regarding monetary policy at a town hall meeting with teachers in Washington, D.C. Last week, the Fed indicated efforts to tighten monetary policy might be nearing an end as new challenges arise in the world economy.

Investing.com reports Comex Gold futures sat at $1,317.15 per troy ounce by 8:00 a.m. (ET), down $2.05, or around 0.15 percent. Spot prices for Gold were also down 0.15 percent at that time. Market watchers were focused on U.S. President Donald Trump's State of the Union address Tuesday, noting the possibility of another government shutdown.

Silver Institute Forecasts 7 Percent Rise in 2019

The Silver Institute, a nonprofit association of professionals from the Precious Metals industry, believes the current economic climate is more supportive for Silver than recent months. In a Silver market trend update, released Tuesday, the organization points out bullion sales are strong so far this year. Other factors cited in the update, as reported by Mining Journal, include 12 percent year-over-year increases for U.S. Mint sales of American Eagle coins and the likely slowdown of interest rate hikes from the Federal Reserve. Industrial uses are also expected to see a “modest rise in 2019.”

Weaker Rand Boosts Platinum Mines in South Africa

A weaker South African rand is helping reduce costs for miners in the country, which could lead to a boost for Platinum production. A Bloomberg article also points out the Palladium price rally is helping offset the price slump for Platinum, giving mining companies much needed income. Carsten Menke, a strategist for Julius Baer Group Ltd, is quoted saying, “While the outlook for South Africa’s Platinum industry is uncertain, we do not believe it is as bleak as perceived, at least for some producers.” As more Palladium is mined to meet industrial demands, more Platinum will be produced along with it. If Palladium prices continue to climb, more automakers could turn to bargain-priced Platinum for use in catalytic converters.

At 12:01 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,314.30 Down $3.30
• Silver, $15.82 Down $0.10
• Platinum, $813.30 Down $7.60
• Palladium, $1,392.50 Up $11.30

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