By Paul Ploumis (ScrapMonster Author)
December 18, 2015 02:51:03 AM
(Kitco News) - Gold and silver prices ended the U.S. day session sharply lower Thursday. A very strong rally in the U.S. dollar index on this day put sharp downside price pressure on the precious metals markets. The other key “outside market” was also in a bearish posture for the metals today, as crude oil prices were lower and are back down near their recent contract and multi-year lows. February Comex gold was last down $27.20 at $1,049.50 an ounce. March Comex silver was last down $0.548 at $13.70 an ounce.
The marketplace on Thursday was still digesting the U.S. Federal Reserve’s first interest rate hike in nine years. The Fed on Wednesday raised its funds rate by 0.25%, which was fully expected. However, most market watchers deemed the FOMC statement and Fed Chair Yellen’s press conference as favoring the dovish monetary policy camp.
U.S. and world stock markets initially rallied in the wake of the Fed rate hike, on notions the U.S. economy can lead the other major world economies out of their malaise. That was also bearish for safe-haven gold. However, the U.S. stock market did see a corrective pullback today, following solid gains posted this week.
With the uncertainty of the Federal Reserve’s interest rate increase out of the way, the marketplace will now seek out a fresh source of concern. Such could well be the present strains in the high-yield bond market, also called junk bonds. Or, it could be China’s slowing economic growth. Or it may be Russia’s geopolitical and economic matters.
Courtesy: Kitco News