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    JM Bullion Gold and Silver Market Update (6/17/15)

    Gold Spot Price Open: $1,182

    Gold Spot Price Close: $1,186

    Change in Gold Spot Price: +$4

    Silver Spot Price Open: $16.08

    Silver Spot Price Close: $16.16

    Change in Silver Spot Price: +$0.08

    Precious metals slightly gained today on news that the Fed is, in fact, going to hold off on hiking interest rates in the immediate future. When all was said and done, gold managed to gain about four dollars while silver’s gains closed in on ten cents. Platinum and palladium finished the day in almost the same exact position as where they began the day.

    Fed Holds Off On Rate Hikes

    Unsurprisingly, the Federal Reserve decided to hold off on hiking interest rates at this month’s policy meeting. With that said, officials from the United States’ central bank alluded that while rate hikes might not happen this month, they are likely to take place sometime prior to the end of the year.

    Despite contracting during the unusually quiet winter months, the US economy is already seen a nice rebound during the second quarter and is expected to grow between 1.8% and 2% by the time the year is through. These new expectations are lower than what were originally forecast in March, they are better than what most people were expecting by winter’s end. The official statement went on to say that the US labor sector is improving, but maintained that unemployment rates are poised to be higher at year’s end than originally expected. By the time the dust settled on Wednesday, investors from the United States held that interest rates are likely to be raised at any one of the Fed’s remaining 6 policy meetings this year.

    Believe it or not, today’s informational post-meeting statement did not move financial markets all that much. Stocks in the United States finished the day mostly higher, and played a big role in preventing precious metals from making any decent gains.

    Greece Emits Much of the Same News

    The central bank of Greece spoke out on Wednesday regarding the financial situation facing the country. In an official statement, it was made clear that Greece is currently on course to partake in a slow and painful exit from the European Union if negotiators and creditors are unable to strike a deal. Furthermore, the central bank warned that Greece runs the risk of falling into a deep recession if current economic conditions do not improve.

    With a bundled payment to creditors totaling more than 1.6 billion euros due before the end of the month, time is quickly running out on Athens. Neither side of the negotiating table has budged much at all in recent days, and it is not looking like that much will change going forward. As has been the case for the last few weeks, today saw yet another day of slightly propped up spot values as a direct result of the worries surrounding Greece’s failed negotiations. This much can be expected to continue so long as Greece and its creditors are unable to make any amount of progress.

    Wrap-Up

    Without a doubt, the biggest news of the day was the wrapping up of the FOMC’s most recent policy meeting. Though no official timeline for the hiking of interest rates was announced, all the signs are there indicating that rates very well might be hiked before the end of the year. In fact, there are plenty of people who believe rates may be hiked more than once before the end of the year. This story will continue to be closely watched as we move deeper into the summer months.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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