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    JM Bullion Gold and Silver Market Update (10/30/14)

    Gold Spot Price Open: $1,225

    Gold Spot Price Close: $1,200

    Change in Gold Spot Price: -$25

    Silver Spot Price Open: $17.34

    Silver Spot Price Close: $16.48

    Change in Silver Spot Price: -$0.86

    For precious metals investors, today is a day you would probably like to quickly forget. Straight from the offing, gold and silver’s spot values declined considerably and ended the day in extremely downtrodden positions. When all was said and done, gold lost about 25 dollars while silver was about 15 cents away from losing a whole dollar today. Platinum and palladium fared similarly, losing decent amounts of value today.

    Upbeat US Economic Data Lifts Dollar, Stocks, Dooms Precious Metals

    As if yesterday’s hawkish FOMC statement wasn’t enough, this morning played host to some positive economic data from the United States that almost immediately drove spot values downward. According to one of the reports released this morning, 3rd-quarter GDP in the United States was up by about 3.5%, year on year. This was not only better than expected, it also capped the best 6-month run the economy has seen in more than ten years.

    Complementing this report was another that indicated October played host to the fewest unemployment benefits filings than any other month in the past 14 years. This historically upbeat data, combined with what the Fed had to say a day ago, only gave the USD a boost and spurred investor risk-appetite. Gold’s value seems to have bottomed out around $1,200/ounce, but with the outlook on the US economy continuing to improve by the day, there is no saying if metals’ collective slide will be short-lived or if it will carry into the last day of the week.

    Fed Statement Lingers, Piling on More Pressure

    Overseas investors were able to react to yesterday’s FOMC statement early this morning and, as expected, this reaction only piled on more pressure to the ailing precious metals market. In case you missed it, the Fed, while reiterating that it will take “considerable” amounts of time before interest rates are raised in the United States, shocked the market by taking a more positive, upbeat approach to describing the currency economic atmosphere in the United States.

    This more hawkish tone ended up causing many investors to become convinced that we might not have to wait until next summer to see interest rate hikes. For gold and silver, rate hikes are no good, so the fact that more and more investors are expecting them sooner or later is really limiting the buying interest in precious metals.

    More Downbeat EU Economic Data

    Just in case the greenback wasn’t receiving enough support from the economic activity here at home, a report from the EU gave the Dollar yet another boost. According to a report released early this morning, EU consumer confidence fell to a reading of -11.1 in October, more or less unchanged from September’s -11.4 reading. Though this reading was in line with expectations, it does nothing to improve the overall outlook on the struggling European economy.

    Wrap-Up

    Looking ahead to the last day of the week, it will be interesting to see if gold and silver will be able to bounce back at all from today’s massive losses. With most factors currently working against the precious metals market at present, it is safe to say that this will be yet another week of losses, but there is still time for massive losses to be mitigated a little bit. Whether that happens or not, however, remains to be seen. There will be more economic data from the United States made public over the course of the next few days, and if it is anything like today’s few reports, you can expect precious metals to continue feeling the pressure.

    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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