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    JM Bullion Gold and Silver Market Update (10/16/14)

    Gold Spot Price Open: $1,246

    Gold Spot Price Close: $1,241

    Change in Gold Spot Price: -$5

    Silver Spot Price Open: $17.56

    Silver Spot Price Close: $17.45

    Change in Silver Spot Price: -$0.11

    Precious metals cooled off on Thursday after a few days of consecutive gains, but it seems as though the precious metals bulls may still be building momentum. When all was said and done, gold lost about 5 dollars while silver was down to the tune of about 11 cents. Platinum and palladium also traded downward for a majority of the day and finished the trading day having conceded moderate value.

    Risk Aversions Remains, But May Be Dissipating

    For the first half of this week, investor risk aversion has helped push gold and silver noticeably higher. Today, however, chart consolidation as well as the easing of risk aversion has pushed spot values back downward, though only slightly.

    US equity markets opened the day as they ended yesterday, trading downward, but by the time the day was through they were well up from daily lows. This suggests that investors may be growing a bit more comfortable with investments in US equities, but it could also just be more of the volatility we have witnessed over the past week or more. Seeing that the selling pressure levied against precious metals has lightened is an encouraging sign, but it will all come down to tomorrow to see how spot gold and silver finish the week. As it stands, metals are poised to make weekly gains for a second consecutive week.

    Euro Stocks Take A Nosedive

    Stocks across the European Union were trading downward throughout a majority of the day on Thursday on worries that periphery currencies in the EU are not carrying their weight. Once again, bond yields in countries like Spain, Greece, and Italy are on the rise. According to one expert, the EU is currently in a deflationary spiral and is in need of some decisive action from the ECB in order to curb rising deflationary pressures.

    Fresh economic data released today stoked the deflationary fires by showing that EU countries using the Euro saw the annual consumer inflation rate fall to a five year low of +.3% in September. You can expect the market to continue to focus on the Euro Zone and all economic data stemming from it over the course of the coming days and weeks.

    USD Index Weakens, For Today

    The USD Index began the day moving upward, but by day’s end finished in the red. If the current level of volatility persists over the coming days, however, it is likely that demand for the greenback will shoot upward. This may end up limiting the buying interest in gold and silver, but with precious metals bulls gaining momentum, there is no saying for sure what the next few days and weeks have in store for precious metals spot values.

    Wrap-Up

    As we look ahead to the last day of the week, the eyes of the investing world will be fixated on both the US equity markets as well as the USD Index. Both of the two aforementioned asset classes have been home to unusual volatility over the last few days and are a point of serious concern for investors both foreign and domestic. In addition to this, investors will also be paying close attention to any and all economic activity stemming from the Euro Zone. With that said, however, no major European economic data is expected to be made public to close out the week.

    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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