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    JM Bullion Gold and Silver Market Update (10/1/14)

    Gold Spot Price Open: $1,209

    Gold Spot Price Close: $1,213

    Change in Gold Spot Price: +$4

    Silver Spot Price Open: $17.05

    Silver Spot Price Close: $17.23

    Change in Silver Spot Price: +$0.18

    Precious metals rebounded a bit today after the first two days of the week brought about decent losses, but the market bears are still very much in control. When all was said and done, gold picked up about 4 dollars while silver managed to gain close to 20 cents. Platinum was the sole loser of the day and fell by more than ten dollars, but palladium managed to gain 5 dollars.

    More Downbeat Economic News From Europe, Eyes Turn to ECB Meeting

    In news from early in the morning, a 10-year bond auction in Germany saw record-low yields of just over .9%. This news only increased worries with regard to EU economic recovery and deflationary price pressures in the region. The EU’s September manufacturing PMI came in at a disappointing 50.3. This reading was slightly below August’s 50.7 and even expectations of 50.5. On the whole, economic data from Europe has been extremely disappointing in recent months.

    Now, the attention of the marketplace shifts to tomorrow’s European Central Bank meeting and Mario Draghi’s post-meeting statement. Currently, no one is expecting any policy shifts to be announced at tomorrow’s meeting, but with the road to economic recovery seemingly nonexistent for the EU, most experts think that something will need to be done, and soon, in order to right the ship.

    US Equities Suffer On Ebola Fears

    Towards the end of the day on Tuesday, a story broke in the United States with regard to the first domestic case of Ebola. This news sent the value of US equities tumbling for yet another day. This news, added to the unrest in Hong Kong which is still going on, has really put a dent in the recent progress made by US equity markets. Adding to the pressure being placed on equities was a report that showed the slowing of US factory production in September. In all, the Institute for Supply Management (ISM) report from September didn’t have many good things to say about factory production in the United States.

    According to Phillip Streible, senior commodities broker at Chicago-based RJO Futures, “The weak ISM data put pressure on equities and the dollar index, giving gold a boost. Gold at $1,200 an ounce also indicates better physical demand and less supply from mine production.” Whether the support gold and silver derived today will be able to be sustained over the forthcoming days remains to be seen, but with so much for investors to worry about, there is a good chance they will. 

    Wrap-Up

    Looking ahead to tomorrow, we will see the activity level of the global marketplace pick up considerably. Not only do we have the European Central Bank meeting to discuss, but investors will also be pondering what Friday’s September employment report holds in store. At present, the market is expecting a healthy number of non-farm payrolls to have been added to the US economy in September, but recent economic data being as poor as it has been, there is no guarantee that such will prove to be the case.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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