Gold Gets a Lift from Stimulus Predictions
7/24/2019 8:55:44 AM
Daily Gold & Silver Market Report –7/24/2019
- As countries signal easier monetary policy, Gold prices rise.
- Silver sees gains in seven of last eight sessions.
- Declining real yields add to U.S. economy concerns.
Gold prices went up Wednesday morning as a growing number of people expect an easing of monetary policy from key central banks. Many nations around the world are likely to take action against a slowing global economy. While spot Gold and futures both rose, more significant gains were held back by a stronger U.S dollar. A Reuters report published by CNBC suggested interest in Gold remained strong, driven by predictions of interest rate cuts, escalating political tensions and less-than-favorable economic growth data.
Many believe the European Central Bank will decide to ease monetary policy as part of its next meeting, convening Thursday. The U.S. Federal Reserve will also hold a policy meeting next week. Many analysts forecast a cut to the overnight benchmark lending rate.
Silver Futures Hit 1-Year High
Silver futures rose significantly Thursday, reaching their highest mark in more than a year. According to MarketWatch, September Silver gained 6.5 cents per ounce to end the session at $1,421.70, a 0.4 percent rise. This is the seventh gain for Silver out of the last eight sessions. Analyst Chintan Karnani is quoted in the article, stating, “Firmness in Silver prices will draw more and more people with less amount to invest. Silver is behaving like a low price safe haven and will attract more and more retail investment.” Karnani indicated the upcoming Federal Open Market Committee policy decision and U.S. nonfarm payrolls data could factor into Silver’s next big price move.
Falling Real Yields Signify U.S. Economy Concerns
Since late last year, yields on 10-year Treasury inflation-protected securities, also known as real yields, have fallen from a high of 1.154% to a recent low of 0.241%. This marks the narrowest return rate since November 2016, according to the Wall Street Journal. All U.S. bond yields have fallen this year, but this decline may be the most concerning to investors. Sam Goldfarb explains in the WSJ article, “Real yields are notable because they show the purchasing power investors can expect to obtain from government bonds after accounting for inflation. ... The continued decline in the 10-year TIPS yield is potentially worrisome because it is sometimes viewed as a gauge of economic growth expectations, one even more refined than the nominal yield.”
At 9:55 a.m. (ET), the APMEX Gold and Silver spot prices were:
- Gold, $1,430.10 Up $6.30
- Silver, $16.69 Up $0.15
- Platinum, $876.20 Up $15.60
- Palladium, $1,534.90 Up $8.30
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.