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    JM Bullion Gold and Silver Market Update (10/6/15)

    Gold Spot Price Open: $1,139

    Gold Spot Price Close: $1,149

    Change in Gold Spot Price: +$10

    Silver Spot Price Open: $15.75

    Silver Spot Price Close: $15.98

    Change in Silver Spot Price: +$0.23

    Gold and silver advanced on Tuesday as the overall view of the US economy has begun to take a turn for the worse. When all was said and done, gold managed to gain about ten dollars while silver picked up more than 20 cents for the second consecutive day. Platinum and palladium both gained about 20 dollars apiece on the day as well.

    Metals Advance Thanks to Weaker Greenback

    Now that the marketplace has had some time to digest last week’s economic data from the United States, it is clear to see that investors are openly expressing doubts with regard to the strength of the US economy. In addition to last week’s September employment report falling short of the mark, data regarding manufacturing in the US also took its toll on how investors now look at the US economy. As far as interest rate hikes are concerned, we are taking note of a marketplace that is growing increasingly convinced that rate hikes will have to wait until next year. In the words of Mitsubishi strategist Jon Butler, “The Fed is worried about the implications of continuing low inflation or even outright deflation because of low oil prices, but a December rate hike is still possible.”

    For now, gold and silver are reaping the benefits of a renewed outlook on the US economy. Not only are possibly delayed rate hikes boosting interest in gold, but so too are worries with regard to the stability of the global economy. Both Asia and Europe are on the verge of needing even more accomodative monetary policies, and this much is making gold and silver investments look just a bit more attractive.

    What Happens to Metals Going Forward?

    Now that we are slowly but surely coming to terms with the fact that we may not see rate hikes in 2015, you may be asking what exactly this means for gold and silver. For now, many think that spot values are going to slowly but surely creep forward. With the global marketplace as uncertain as it is at present, the appeal of precious metals will only grow.

    The FOMC is set to hold their October meeting a few weeks from now, and it will be interesting to see if their outlook on the economy has changed at all. If you can remember, the last we have heard from members of the Fed is that most members are still confident in rate hikes during 2015. While that may be so, the last few weeks’ worth of economic data have forced the market to believe otherwise. While a lot remains unknown with regard to interest rates, it is quite clear that the US economy is showing signs that the global economic slowdown may be hurting growth here. If that is, in fact, the case, the likelihood that rates will be risen is only going to diminish.

    Wrap-Up

    All in all, Tuesday was not the most eventful day in recent history. There was very little in the way of economic data made public and most investors were content to sit back and continue speculating about the future of interest rates in the US. The Dollar, which has performed well over the past few months, is beginning to feel the impact of an increasingly negative outlook on US economic growth, so it will be interesting to see how things go through the last three trading days of this 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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