Gold Silver Rally On Weak Economic Data

Gold Silver Rally On Weak Economic Data

Gold Silver Rally On Weak Economic DataLos Angeles CA, July 14 (Tangible Investments) — by James O’Dell — Precious metals prices rose sharply in early trading on Friday as Gold Silver rally on weak economic data. Gold is up 1.05 percent to $1,230.10 an ounce after easing $2.70 on Thursday to close at $1,217.30 an ounce.

Silver is up 2.04 percent to $15.99 an ounce after sliding $0.23 on Thursday to close at $15.67 an ounce. The Gold/Silver ratio rose to 77.68. Platinum is up 1.55 percent to $912.00 an ounce. Palladium is up 0.59 percent to $857.00 an ounce.

Gold rallied in early trading on Friday as the dollar turned slightly lower in the wake of weaker-than-expected economic news. June retail sales were down 0.2 percent on expectations of an increase of 0.1 percent. June consumer price index (CPI) numbers were unchanged while expectations were for an increase of 0.1 percent.

Yellen Testimony Favored Gold

Annualized inflation increased just 1.6 percent last month well below the Fed’s target of 2.0 percent. Inflation has been in focus since Fed Chair Janet Yellen described weakening inflation as “transitory,” in her two-day Congressional testimony.

Overall, many felt Yellen’s testimony was highly favorable for Gold.  Yellen spoke of the “uncertainty” of how inflation will respond to the tightening in the economy.

“Of course, considerable uncertainty always attends the economic outlook. There is, for example, uncertainty about when – and how much – inflation will respond to tightening resource utilization. Possible changes in fiscal and other government policies here in the United States represent another source of uncertainty,” said Yellen.

“Gold has been undermined by rising government bond yields owing to major central banks generally turning more hawkish, while the still-buoyant equity markets means there has been reduced demand for the perceived safe haven asset,” said Fawad Razaqzada, market analyst at Forex.com, in a recent commentary.

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.

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