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    JM Bullion Gold and Silver Market Update (6/18/15)

    Gold Spot Price Open: $1,178

    Gold Spot Price Close: $1,203

    Change in Gold Spot Price: +$25

    Silver Spot Price Open: $16.08

    Silver Spot Price Close: $16.26

    Change in Silver Spot Price: +$0.18

    Precious metals added considerable value today and managed to move forward the most in 5 weeks on new beliefs regarding interest rate hikes. When all was said and done, gold gained more than 20 dollars while silver’s gains closed in on twenty cents. Platinum ended the day having gained roughly ten dollars, though palladium remained more or less glued to its starting position.

    Metals Advance on New Rate Outlook

    Gold and silver can credit today’s nice advances to the further digestion of the Fed’s post-meeting statement, which makes it seem like the Fed is going to raise interest rates slower than originally expected. Also helping gold and silver today were reports indicating that inflation levels in the United States are well-below the Fed’s targets. Between the post-meeting statement and these new inflation numbers, it is easy to see why a growing number of people think the Fed is more dovish on rate hikes at the present moment in time.

    Miguel Perez-Santalla, of Heraeus Metals, said today that “The Fed statement has already given gold a boost, and today’s subdued inflation number shows that the Fed will be in no hurry to get hawkish.” We will have to keep a close eye on US economic data going forward, but most people are confident that rate hikes will not take place in dramatic fashion, and may instead be rolled out slowly, over time. Now, the real question pertains to whether gold and silver are able to keep gaining on this new outlook regarding US interest rates, which have been kept at near-0 levels since 2008.

    Dollar Continues to Weaken

    The US Dollar has been on a consistent downtrend since the beginning of June, and only saw the trend intensify over the past few days. The fact that interest rate hikes are not as widely expected as they were a few weeks ago is something that is doing the Dollar no favors. Today it was the lower than expected readings on consumer inflation that sunk the Dollar. As rate hikes are further and further delayed, the US Dollar is looking like it will only continue to suffer.

    It seems as though every other story over the past few weeks has come back to focus on the timing and extent of US interest rate hikes, but that is one of the main focal points of investor attention at present. In fact, as we head deeper into the summer months, I do not at all anticipate that investors will turn their focus away from debate over when and by how much interest rates will be raised.

    Wrap-Up

    Looking ahead to the last day of the week, the eyes of the precious metals market will be firmly fixated on what spot values are capable of doing. With gold above the $1,200/ounce mark at present, investors will be watching to see if follow-through buying can push spot values even higher. Tomorrow will be a big technical day for the value of gold and silver going forward. As of now, the combination of delayed interest rate hikes and worries regarding Greece’s ability to pay back debts have many people thinking that this week will be concluded on a positive note 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.

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