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    JM Bullion Weekly Market Preview (8/15/16)

    Market Overview: Both gold and silver are moving slightly higher in early trade today. Gold is up $1.50 per ounce as of this post in what appears to be very light trading volumes. Mid-August has arrived and markets could simply drift into September at this point as investors take last minute vacations and time off. While gold has seen a little selling pressure, the market has held up well given current equity market strength and the bulls still appear to be in control.

    Key Data Points: The latest reading on the Empire State Manufacturing Survey this morning showed a reading of minus 4.21. Consensus estimates were looking for a reading of 2.50. The report was close to flat, and does not indicate any improvement for the factory sector.

    The Housing Market Index rose by two points to register a reading of 60, the second time this year the 60 level has been reached. While the report showed first time home buyers remaining on the sidelines, it did point to improving activity for present and future sales. The housing market has seen some significant improvement recently, and has been one of the more positive sectors of the economy. Low interest rates have likely been the primary reason for the pickup in housing activity, and if rates remain at exceptionally low levels, housing may continue to see further improvement.

    The rest of the week is light in terms of data, with investors looking forward to the latest readings MBA Mortgage Applications, Weekly Jobless Claims, CPI, Housing Starts and more. There will also be two Fed officials speaking this week whose commentary may garner attention from investors.

    Outside Markets: Stocks continue to push further into new all-time high territory, and appetite for risk remains quite strong. Higher crude oil prices are also likely driving buying in equities and stocks could potentially have significant room to run higher.

    The dollar index is slightly lower today and it appears the greenback is once again on the defensive. Changing interest rate expectations may drive price action in the dollar index, and any significant weakness may potentially boost gold, silver and other precious metals.

    The Big Picture: Markets may simply glide at this point into September and investors will continue to pay close attention to any commentary from the Fed regarding interest rates. Investors will also closely monitor the data stream, as any significant strength or weakness could potentially influence the Fed’s plans regarding rates. For now, the gold bulls appear to be in control. That being said, however, the market remains vulnerable to further selling if additional upside is not seen in the near future.

    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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