- Posted in: Precious Metals Reports
In this weekly market report for precious metals for October 18-24, we saw a slight gain in gold prices, but a larger gain in silver. Platinum ended at the same level as it opened. Palladium fell for most of the week, with the beginning of a rebound. On Monday, October 24, 2016 the Federal Reserve Bank of Chicago President Charles Evans said he would support the interest rate increase in November, but also said the timing of a rise is not critical and that there is no urgency to raise the U.S. interest rates. With growing support for an interest rate hike in the future, the U.S. dollar has hit a seventh month high.
The strength of the dollar factors heavily into the gold prices. While they did rise slightly for the week, the speculation that the Fed will hike interest rates is becoming more widespread this week. Whether the interest rates go up or even if people expect them to go up, the dollar is strengthened, leading to lower gold prices.
Silver has already benefitted from the industrial use of silver in renewable energy and is expected to continue on its upward trend at least through the end of the year. The increasing demand for silver bullion coins will continue to increase. The gold/silver ratio, which was 71 by Monday, is expected to drop to a much lower ratio by year’s end, possibly as low as 55, pushing silver prices even higher.
Gold came in at $1,261.65 per ounce on the 18th, up from $1,252.70 on the 17th. It continued to rise, hitting $1,271.65 at market’s close on the 19th before dropping to $1,263.95 on the 21st. The price finished on the 24th at $1,265.55.
After rising from $17.4000 on the 17th to $17.6500 on the 18th, silver prices saw little fluctuation, ending at $17.6400 on the 24th.
Platinum went through significant changes throughout the week. Opening at $947.00 on the 18th, this precious metal fell to $927.00 by close on the 21st. Monday saw platinum rebound to $947.00 by close of market.
On October 17, palladium opened at $647.00. it fell fairly steadily, reaching $619.00 by close of market on the 21st. However, palladium began to regain by the start of the new week, up to $628.00 at Monday’s close.
Interested in learning more about the precious metals market or investing in gold, silver, platinum or palladium? Contact a GMRgold representative today at (877) 795-9585 today and our precious metals experts will be more than happy to answer any of your questions.