Weekly Market Reports

Gold Price Slips Ahead of Fed Decision

Daily Gold & Silver Market Report – 5/1/2019

  • Gold prices dip ahead of Federal Reserve announcement.
  • U.S. and China enter new round of trade negotiations.
  • Poor supply fundamentals keeping Silver prices low. 

With new U.S. Federal Reserve monetary policy decisions announced today, the price of Gold slipped downward. This change in direction came after overnight gains for U.S. equities and as many European markets close for May Day. The announcements following the Fed’s two-day meeting are scheduled for 1 p.m. (ET) Wednesday. A Reuters report published by points to downward pressure on Gold due to waning interest in Gold as a safe-haven asset as global equities move up.

The U.S. and Chinese governments started another round of negotiations in Beijing Wednesday. If these talks lead to a positive result for both countries, investors may see even less need to hedge against inflation with Precious Metals assets. Market strategist Michael McCarthy believes there is some hope for bullion, noting “the pulling back of the U.S. dollar from recent highs over the last few sessions has been broadly supportive of Gold."

Silver Weakness Partially Due to Poor Demand

The U.S. economy expanded during the first quarter of 2019, outperforming many prominent forecasts. Gold prices have seen a fair share of volatility, but have seen some support. Silver, meanwhile, has struggled to gain momentum in the new year. In a sponsored post published by Nasdaq, finance writer Alex Kimani suggests weak supply and demand fundamentals are a primary driving force behind Silver’s struggles.

Like other Precious Metals, Silver is an essential financial asset during times of market volatility. Silver is also widely used in manufacturing, including consumer electronics. Kimani writes, “About 55-60 percent of the world’s Silver supply over the past five years went to industrial fabrication, 25 percent to jewelry and silverware and the balance—15-20 percent—went to investments in Silver coins and bars.”

Kimani goes on to point out while the world’s Silver supply has gone down in the last 10 years, demand shrunk as well. Kimani notes, “Investors tend to favor Precious Metals like Silver and Gold during times of market turbulence. Unfortunately, there simply have not been too many tempestuous periods during the current secular bull run—the longest in history.”

At 10:38 a.m. (ET), the APMEX Gold and Silver spot prices were:

  • Gold, $1,285.50 Up $1.20
  • Silver, $14.83 Down $0.20
  • Platinum, $879.40 Down $11.30
  • Palladium, $1,338.00 Down $56.70

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.

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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies.

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