shopper approved
    2244.92
    44.43
    25.17
    0.39
    924.93
    16.63
    1051
    30.33
    banner-update21

    JM Bullion Weekly Market Review (9/16/16)

    Market Overview: Gold and silver are both under some selling pressure again today, and the bears clearly have the upper hand right now. Gold prices have been declining for several days now, and the market remains vulnerable to a larger scale selloff if the bleeding isn’t stopped soon. These precious metals have been under pressure due to changing interest rate expectations, and markets will look forward to next week’s FOMC meeting for a possible rate hike — although chances of a hike are pretty slim. Markets may, however, obtain some further clues from the central bank about the potential for a December rate hike.

    Key Data Points: The latest Consumer Price Index data was released this morning and showed a slight uptick in inflation. August CPI registered a reading of .2 percent, while consensus estimates were looking for a reading of .1 percent. The core CPI reading was also a little hotter, with a reading of .3 percent and a reading of 2.3 percent on the year.

    The latest reading on Consumer Sentiment was unchanged from August, with a reading of 89.8, below consensus estimates.

    Outside Markets: Stocks are lower again today, as the bears have gained the near-term technical advantage. Equity markets have ebbed and flowed with the data stream and changes in rate expectations, and may remain on the defensive until more clarity is seen about the Fed’s plans. Today is also quadruple witching day, which can make for choppy and volatile price action. Today’s slightly hotter than expected CPI data may be fueling further speculation of a September rate hike, and the dollar is seeing strong buying today as a result of the data.

    Crude oil is also under pressure again today, and weaker oil is likely weighing on equity markets.

    The Big Picture: Gold and silver remain vulnerable to changes in rate expectations and could potentially remain on the defensive until next week’s Fed meeting is concluded. These markets may simply be discounting the next rate hike by the Fed, and while they could see further selling once the Fed does tighten, they may potentially bounce back if it appears that rates are not likely to continue moving significantly higher anytime in the near future.

    With or without a hike in the U.S., many areas of the world are still in negative interest rate territory and more easing measures may be seen in the coming months. This, along with any additional weakness seen in China or other emerging markets may be supportive for gold and silver.

    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.

    Top Stories

    Read More

    Subscribe to JM Bullion’s newsletter to receive timely market updates, sales and giveaways.