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    JM Bullion Gold and Silver Market Update (12/12/14)

    Gold Spot Price Open: $1,227

    Gold Spot Price Close: $1,223

    Change in Gold Spot Price: -$4

    Silver Spot Price Open: $17.17

    Silver Spot Price Close: $17.09

    Change in Silver Spot Price: -$0.08

    Gold and silver spot values began the last day of the week trending downward, but are going to post weekly gains. When all was said and done, gold lost about 5 dollars on the day while silver declined by almost ten cents. Platinum and palladium also finished down today, but their respective losses were less than ten dollars.

    US Employment Data Mostly Disappoints

    Earlier this morning, the US Labor Department released a Producer Price Index from November. According to the report, month-on-month PPI for November fell by about .2% when compared to October. Because expectations were for a .2% increase, this data is being touted as disappointing.

    The Labor Department’s report went on to say that November’s PPI decline was a direct result of a fall on the part of the index for final demand goods. Officially, over 60% of the decline of final demand goods can be directly related to the falling value of crude oil, and thus, gasoline.

    Despite this poor data, most market experts do not anticipate that the Labor Department’s report will have any major impacts on the marketplace as we head into next week. Looking ahead to the next 5-day trading session, it’s shaping up like we will only be dealt a very small amount of economic data, most of which will likely not have too much of an impact on the spot values of precious metals. With that said, however, all eyes will be fixated on any economic data that is made public as it will giv investors more insight into the current strength of the overall global economic climate.

    Some Think Interest Rates May Be On the Rise Sometime Soon

    A hot topic for much of the past few months has been the future of interest rates in the United States. At this point it is mostly agreed that interest rate hikes are coming, but no one is entirely sure just when they might be enacted. Though investors have been offered very few concrete clues with regard to the future of interest rates, that might all change come next Tuesday and Wednesday. With Federal Reserve policy makers set to hold their monthly meeting, it is now widely believed that the Fed may finally announce their plans as it pertains to hiking rates.

    For gold and silver, the prospect of interest rates being raised sometime in the near future is no good simply because it will cause investor interest to head elsewhere, such as the currency and equity markets. Still, with interest rates having been on the mind of investors for quite some time now, I would not be at all surprised to see metals have a muted reaction if any concrete information regarding rate hikes is provided next week. Just as it was with the ending of Quantitative Easing, the market has known about interest rate hikes for months now and it would not really come as a surprise if rate hikes are announced next week. Still, we will just have to wait and see what the FOMC and Janet Yellen has to say.

    Wrap-Up

    Though precious metals have conceded decent value over the last few days, this week has been one of gains for both gold and silver. Now, the investing world must wait to see if this week’s gains can be retained over the weekend or if chart consolidation will continue to push spot prices downward. Next week is gearing up to be slow from an economic data standpoint, but with an announcement from the FOMC widely expected, investors will still have plenty of information to mull over and reflect upon.

    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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