Gold Spot Price Open: $1,186
Gold Spot Price Close: $1,189
Change in Gold Spot Price: +$3
Silver Spot Price Open: $16.71
Silver Spot Price Close: $16.75
Change in Silver Spot Price: +$0.04
Precious metals continued their decent run on Tuesday thanks to some concerns out of the United States and the UK. When all was said and done, gold ended up gaining about 3 dollars while silver added close to 5 cents. Platinum and palladium both lost some ground today, even despite somewaht positive starts.
Continued Concerns Over Brexit
We are seeing some safe-haven buying as a result of some comments made on Monday by the UK’s new Prime Minister Theresa May. Speaking at the beginning of the week, May made it clear that the UK is not going to partially exit the EU, but rather be part of a complete and total exodus. Even though the referendum vote that took place earlier in 2016 resulted in the UK’s departure from the EU, there were still many people who believed that a complete and total departure was unlikely.
Yesterday saw those thoughts dashed as it was made abundantly clear that there will no longer be a UK-EU connection. Unsure of what these comments really and truly mean for the average UK citizen going forward, we are seeing a spike in safe-haven demand through the early parts of the week. Helping keep this safe-haven demand alive is the fact that spot values are still somewhat beaten down.
Donald Trump Press Conference Draws Attention
Even though he was officially elected president of the United States during the first days of November, we have not really heard much from President-elect Donald Trump since then. Though Trump is not officially going to be speaking until tomorrow, investors are already speculating as to what he might have to say.
As it stands, the overriding hope is that Donald Trump will shed some light as to what his specific budgetary plans are. It is still unclear what Trump will and will not say, but investors are curious about his comments due to the fact that, as it stands, interest rates are expected to be risen at least 3 more times. With that being said, whether or not they are risen as well as how much they are risen by will be determined by the progress of the US economy throughout the year. If the economic data stream continues to be as positive as it has been the past few months, there is nothing there to make us believe that rates will not continue to be hiked. Still, Donald Trump as President is something represented by a big wild card, and no one is quite sure what he will say or do once he actually and officially assumes the position.
As it stands, the preliminary school of thought is that Donald Trump might be good for precious metals. Still, this is something we will not know for sure until after January 20th.
Gold and silver are continuing to show strength through the early parts of this week. The USD is cooling off and seems to be officially done with its November through December rally. This is something that is coming directly to the aid of precious metals and will continue to do exactly that. What’s more, strong physical demand for precious metals from China is helping keep spot values propped upwards. There were plenty of people who believed that 2017 would be a positive year for precious metals, and so far things are panning out according to plan. The real test will be to see how precious metals react once Trump moves into the Oval Office.