U.S. Dollar Falls as Gold Prices Rise
7/10/2019 12:23:42 PM
Daily Gold & Silver Market Report – 7/10/2019
- Gold prices rise as U.S. dollar struggles.
- S&P gets a boost from Fed Chair Powell's remarks before Congress.
- Fed planning inquiry into Facebook cryptocurrency.
Gold futures and spot prices rose Wednesday, setting the stage for the highest levels of the week. Meanwhile, U.S. dollar values fell following statements from Federal Reserve Chair Jerome Powell that many analysts interpreted as dovish. MarketWatch reports Powell said Wednesday morning, in a prepared speech before Congress, there is much uncertainty in the U.S. economy, driven by trade policy indecision and a slowing global growth. Powell reiterated the Fed “would act as appropriate to sustain the expansion.”
Spot Gold traded up at $1,412.43 as of 8:50 a.m. (ET), rising $17.76 per troy ounce. Other Precious Metals also benefited from Powell’s remarks before Congress. Silver rose to $15.36, while Platinum and Palladium leaped upward.
S&P Briefly Tops 3,000
Following Fed Chair Powell’s testimony to U.S. Congress Wednesday morning, stocks escalated to record highs. Notably, the S&P 500 rose 0.4 percent to briefly break 3,000 for the first time in history. The upward movement was mostly driven by energy and tech sectors, according to CNBC. According to CME Group’s FedWatch tool, investors have priced in a 100 percent probability of an interest rate cut in July, even though a positive June jobs report limited expectations of more forceful easing.
Fed Planning Investigation of Facebook Cryptocurrency
In his remarks before Congress, Fed Chair Powell indicated a working group had been set up to research the impact of Facebook’s upcoming cryptocurrency. A potential rival to Bitcoin, Facebook execs announced this year they were developing Libra, a digital currency operating through the company’s existing apps, including Messenger and WhatsApp. Responding to a question from House Financial Services Committee Chairman Maxine Waters, Powell said, “Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.” Bloomberg quotes Powell saying, “These are concerns that should be thoroughly and publicly addressed before proceeding.”
At 1:23 p.m. (ET), the APMEX Gold and Silver spot prices were:
- Gold, $1,413.00 Up $12.00
- Silver, $15.29 Up $0.09
- Platinum, $828.70 Up $14.60
- Palladium, $1,599.00 Up $49.10
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