11/11/2014 8:43:43 AM By: Brandi Brundidge

 

METALS PRICES MAKE MINOR MOVES FED INTEREST RATES TOO LOW

A stronger U.S. dollar and rising stocks reflected in the Gold price this morning, as the yellow metal fell slightly. Increased physical demand is also helping Gold. " Retail demand is very strong since prices came off," Heraeus trader Alexander Zumpfe said. " Overall, physical demand is lending some support &ndash Asia is also showing steady buying interest, though not on extreme levels." Gold is down 4.3 percent this year, due heavily to the U.S. economy making a healthy recovery, which has created a stronger dollar and pressured safe haven assets.

Philadelphia Federal Reserve President Charles Plosser shared with CNBC his beliefs over the U.S. economy' s low interest rates and how they are affecting the nation. Plosser thinks there are visible signs showing interest rates are extremely low, such as slight wage growth and falling oil prices. He stated, " There is no precedented history to have rates at zero. I think we are really behaving in a way which is outside of historical norms and that should make us nervous &hellip Given the unemployment rate, and even given low inflation, we are below where we would normally be."  

At 9:37 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,158.40 Down $4.40
• Silver, $15.65 Down $0.12

 

 

 

11/7/2014 4:20:00 PM By: Brandi Brundidge

 

WEAK U.S. JOBS DATA RAISES GOLD, STOCKS

After a harsh week, Precious Metals prices were lifted following lower than expected U.S. jobs figures for October. The news pressured the U.S. dollar, as investors continued to take profit on the greenback after its month-long rally. " After we' ve had such a big selloff, some speculators are covering their shorts after the worse-than-expected nonfarm number. I think that' s all it is at this point," Newedge Precious Metals trader Thomas Capalbo said. Although the U.S. nonfarm payroll did not perform as expected, the unemployment rate fell to a six-year low, giving more reason for the U.S. Federal Reserve to raise interest rates in the near future.

The U.S. stock market closed the week with both the S& P 500 and Dow Jones Industrial Average at record highs. This success was based on the latest unemployment news, as investors expected better figures Friday. " The [jobs] report is positive. The economy is still adding more than 200,000 jobs a month, but at the same time there is no indication that it is overheating as the wage growth remains muted.  There is no reason for the Fed to get hawkish," Schwab director of market and sector research Brad Sorenson said. The current job market conditions reflect neither a strong nor weak economic recovery, which could be good overall for commodity prices.

At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,180.70 Up $36.10
• Silver, $15.88 Up $0.40

11/6/2014 4:20:32 PM By: Brandi Brundidge

 

METALS REMAIN STABLE INVESTORS ANTICIPATE FRIDAY&rsquo S NONFARM PAYROLL 

Precious Metals prices remained flat throughout trading on Thursday after the U.S. dollar dipped from profit-taking.  " We' re holding steady today but nobody wants to make a big move ahead of the employment numbers tomorrow morning. If there' s a positive number, they (the bears) may take a run at it," Paul Sacks, principal gold trader at Aurum Options Strategies in New York, said. Further pressure on Precious Metals could come tomorrow with better-than-expected unemployment numbers, which the market will see as more reason for the Fed to raise interest rates faster.

The Labor Department reported earlier today that state unemployment benefits fell by 10,000  to an adjusted 278,000 for the week ending November 1^st.  For the first time since April 2000, the four-week moving average of claims fell to 279,000.  If disappointing numbers are released for the non-farm payroll report tomorrow, investors could finally see some support for Gold. Wage growth plays a key role in the Feds decision to raise benchmark interest rates as it&rsquo s a good sign for a stable economy. Currently, compensation has increased at a 2.3 percent rate in the third quarter comparable to this year&rsquo s second quarter.

At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,144.30 Down $4.40
• Silver, $15.51 Down $0.03

 

November 05, 2014 - 15:25:53 PST

Silver And Powerful Forces

For several years it seems that powerful forces have been aligned against Gold & Silver. What will happen to prices ... Read More

11/5/2014 5:26:01 PM By: Paul Stevens

 

METALS CONTINUE TO DECLINE AS OIL GETS BOOST

Precious Metal prices continued to decline Wednesday, reaching their lowest point since mid-2010.  A day after U.S. mid-term elections, the dollar soared, hitting a four and a half year high while providing tremendous pressure to metals. When asked his thoughts on Gold and the future of metals, Credit Suisse analyst Karim Cherif said, " This year everybody got used to the idea that Gold is not as exciting an investment as it used to be, provided that we continue to see benign inflation, economic growth, a stronger dollar."

U.S. stocks reached record numbers while European equities moved up Wednesday on better than expected earnings data. News the Republican party won control of the U.S. Senate  caused oil prices to gain, fueling an uptick in energy shares. Veronika Pechlaner, global equities investment manager at Ashburton Ltd, said, " Republicans are seen as more business friendly, so it' s not surprising if markets react positively to the midterm results."

At 6:24 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,144.30 Down $4.40
• Silver, $15.44 Down $0.10