Gold & Silver Report 16 March 2015

Precious metals were mostly hammered this week, seeing a three month lows due to a year-highs performing US dollar pushing continued expectations of a mid-year US interest rate hike. Gold steadied slightly by the end of the week, firming after its worst losing streak since 1973, as the US dollar nursed some losses and the market began awaiting next week’s US Fed committee meeting.

Price and charts snapshot:

Commodity Units Price

Change

% Change

COMEX Gold (Apr 15 delivery) USD/t oz. USD$1,152.40 (AUD$1,511.84)

+0.50

+0.04%

Gold Spot USD/t oz. USD$1,159.00 (AUD$1520.50)

+0.52

+0.04%

COMEX Silver (May 15 delivery) USD/t oz. USD$15.49 (AUD$20.32)

-0.02

-0.14%

US Dollar Spot USD/t oz. USD$15.66 (AUD$20.54)

0.00

+0.03%

 

Source: NASDAQ

On Monday Gold remained near a three-month low after the previous week’s U.S. jobs report boosted expectations that the Federal Reserve would raise interest rates soon.[1] On Tuesday the U.S. dollar held near a 12 year high compared to the yen and euro, sending Gold near three-month lows and sustaining expectations over a US rate hike[2]. On Gold’s fall continued, dropping another 1.1% to hit its lowest in over three months, as the US dollar and rate hike expectations remained robust. While Silver also fell by 2.2% to a three-month low. On Thursday struggled to overcome the losses from the last eight downward sessions.[3] By Friday however the yellow metal firmed slightly above the US$1,150 mark as the US dollar nursed some losses, but still was set a weekly loss. Silver was also on track for a second straight weekly fall, down 0.3%.[4]

Gold has continued to feel the heat from the strong US dollar this week. It began its recent decline since a stronger-than-expected U.S. jobs in the revious week rekindled speculation that the US Federal Reserve would raise interest rates soon. As Citi analyst David Wilson said “Data on [the previous week] was so significantly higher than expected that the market started to think that the Fed will have to start changing their language at the next meeting,”. On Friday of the week prior, the US Labor Department’s employment report showed that the U.S jobless rate had fallen to its lowest since May 2008.[5]

The US Fed has kept interest rates near zero since December 2008, providing a platform for gold prices. As such, when the central bank started to signal tightening of monetary policy, the metal began to fall, as higher interest rates affect demand for non-interest paying assets such as gold.[6] The anticipation of such a move has been reflected in the market, according to Mitsubishi Corp strategist Jonathan Butler: “What’s happening now is the pricing in of a mid-to-late-year rate hike. It’s hard to see, apart from physical demand re-emerging, any major upside catalyst.”, adding the “Ultimately support is at $1,130, which is around last year’s lows, but it’s hard to argue against the short-term downtrend established since the end of January”.

The next market focus will be on the US Fed’s next committee meeting on March 17-18.[7][8]

Author Lisa Casagrande | https://www.goldbullionaustralia.com.au


[1] http://www.reuters.com/article/2015/03/10/markets-precious-idUSL4N0WC32S20150310

[2] http://www.reuters.com/article/2015/03/10/markets-precious-idUSL4N0WC06I20150310

[3] http://www.reuters.com/article/2015/03/12/markets-precious-idUSL4N0WE06Z20150312

[4] http://www.reuters.com/article/2015/03/13/markets-precious-idUSL4N0WF34Q20150313

[5] http://www.reuters.com/article/2015/03/10/markets-precious-idUSL4N0WC32S20150310

[6] http://www.reuters.com/article/2015/03/10/markets-precious-idUSL4N0WC06I20150310

[7] http://www.reuters.com/article/2015/03/13/markets-precious-idUSL4N0WF34Q20150313

[8] http://www.reuters.com/article/2015/03/10/markets-precious-idUSL4N0WC32S20150310

 

Keep informed of live spot prices, news and specials.

If you would like to stay informed about up to the minute pricing, market news and specials, subscribe here.

Live Prices

Gold

Silver

Gold

2,531.81/oz

Silver

29.44/oz

Gold

2,531.81

Silver

29.44

Latest Post

Where Are We Headed: Inflation, Asset Markets, Currencies, Commodities & Precious Metals

China’s Imports Shift Platinum Into A Global Deficit, Presenting A Conundrum To The Industry

THE CRUNCH IS COMING FOR SOUTH AFRICAN PLATINUM MINES, BY WAY OF WAGE DEMANDS

Interest Rates Rising: A Very Bullish Signal For Precious Metals

IMMENSE SEASONAL BUYING OPPORTUNITY IN GOLD, SILVER & PLATINUM IS UPON US

Mining Platinum Group Metals – Part 2

South African Platinum Mine Supply in Decline as Demand Gains Significant Traction – Part 1

Auctus Metal Portfolio Overview – 1 November 2021

UK Hydrogen Strategy 2021 Platinum Long-Term Demand Moves Ever Higher

WHY HAVE PRECIOUS METALS UNDERPERFORMED IN 2021?

MASSIVE EXPLOSION AT ESKOM’S NEW POWER UNIT ‘MEDUPI’

Understanding Why Precious Metals Are Undervalued

The Impact of South Africa’s energy crisis on PGM mine supply

CYCLICAL TRENDS IN PRECIOUS METALS

WHY METAL FALLS?

Auctus Metal Portfolio Overview – 1 June 2021

Price Volatility & Correction In Platinum Group Metals ( PGM’S ) in May 2021

A CASE FOR PLATINUM

THE SLINGSHOT SETUP IN PRECIOUS METALS

PLatinum (Pt) UPDATE

PRICE FALLS IN METALS

The Hare and The Tortoise Story

Immense Seasonal Buying Opportunity in Gold, Silver & Platinum Is Upon Us

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 3

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 2

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 1

AUCTUS Company Portfolio Models Overview as of 1st June 2020

Gold and precious metals are among the safest investment assets during a global crisis

Investing in and Retaining a precious metal portfolio during the COVID-19 pandemic

How Cheap is Gold as of April 2020

Anglo Platinum

Platinum – Supply and Demand

Platinum price to rise as “climate change” pressure gains traction

David Davis

Auctus Metals Breaks+50% Annual Net Returns for Year 2019

Big Profits in Buying Gold, Silver & Platinum in December

What’s the difference between and optimist and a pessimist?

Our Clients Portfolio Performance Spectacular Chart Performance – 3 charts

Silver Technical Picture Price Outlook

China Devalues their Currency

Palladium – the quiet achiever of the Precious Metals Portfolio

Diversification within Precious metals – The Potential is Incredibly Compelling

Why Silver is seriously Bearish

Forecasts are now becoming mainstream plus platinum

Historical Precedent in Silver & Gold

The perfect storm slowly starts to hit and can no longer be ignored

A Momentum Lead Capitulation in Platinum, A Major Triple Bottom Develops?

Black swans darkening the sunlight out from view

WHAT IS IT ABOUT PGM’s (Platinum Group Metals)?

Have you considered Rhodium?

Historical Investment Opportunity Presents Itself

Bullion Banks ARE Now the Most Bullish on Silver in Decades!

A Confluence of Events in Silver Are Coming Together

A Confluence of Events Leading to Silver Price Rise

We are currently at a 1 in 5-year event

DEBT CRISIS, CRYTOCURRENCY, PROPERTY AND A MONEY TSUNAMI

First Bullion Bulletin – Update with David Mitchell

Porsche Gold Rush: Special operation for Porsche on the streets of London

METALS, STOCKS & BONDS

Happy New Year – what is happening at GBA and precious metal investing

HOLIDAY TRADING

NOT ALL THAT GLITTERS IS GOLD

This Week’s Specials

PERTH MINT YEAR OF THE DOG 2018 GOLD & SILVER BULLION COINS

The Biggest Opportunity in Precious Metals Since Late 2015, and the Last Chance at These Prices ?

Please tell us what you think of the new GBA website!

X
2,531.81
29.44