Los Angeles CA, January 10 (Tangible Investments) by James O’Dell Precious metals prices were mixed on Wednesday. China changes stance on US debt Gold rallies. Gold is up 0.50 percent to $1,319.20 an ounce after easing $7.10 on Tuesday to close at $1,312.60 an ounce.
Silver is up 0.53 percent to $17.03 an ounce after easing $0.16 on Tuesday to close at $16.94 an ounce. The Gold/Silver ratio rose to 77.49. Platinum is up 0.62 percent to $970.00 an ounce. Palladium is down 0.55 percent to $1,088.00 an ounce.
Gold hit four month highs in early trading Wednesday after China announced that it was reconsidering its stance on U.S. Treasury purchases. After reviewing China’s foreign-exchange holdings officials have decided to slow or completely halt the purchase of U.S. Treasury bonds.
If the reports turn out to be true and China no longer sees Treasuries as an attractive option, the repercussions could be significant as the country is one of the biggest holders of U.S. debt, said OANDA, in a note. The tightening effect of such measures would likely have an impact on how many times the Federal Reserve raises interest rates this year, which is why we’ve seen a corresponding drop in the dollar.
Policymakers Calling For Just Two Rate Hikes In 2018
Meanwhile, Chicago Fed President Charles Evans said Wednesday that he still wants to wait until mid-2018 before another rate hike. I’d feel a lot more confident if I saw those transitory reductions in the inflation rate go away, said Evans.
Evans was the third policymaker in less than a week calling for just two rate hikes in 2018. Atlanta Fed President Bostic, and Philadelphia Fed President Harker are both calling for only two interest rate hikes this year. While Evans sees the economy growing a bit faster than 2.5 percent Harker sees it growing a bit slower. If the Fed holds to two increases or fewer this year, Gold should benefit.
It’s important to protect your hard earned wealth during these times of economic and geopolitical uncertainty. At Tangible Investments, it doesn’t matter whether you’re new to precious metals or a seasoned veteran, you will always be dealing with top industry experts. Take a moment and browse our vast selection of valuable collectibles. Then, call Toll Free 1.888.655.9255 today.
Let the helpful staff at Tangible Investments assist you in your next purchase or sale. You may also wish to click here to check out our eBay store. Tangible Investments is the leading buyer of rare Gold and Silver coins, art, antiques, diamonds, sterling and flatware. We also loan against anything of value and offer more money at half the loan cost. Come in or call 1.888.655.9255 now for a free quote.