Gold Spot Price Open: $1,240
Gold Spot Price Close: $1,239
Change in Gold Spot Price: -$1
Silver Spot Price Open: $18.13
Silver Spot Price Close: $17.98
Change in Silver Spot Price: -$0.15
Precious metals did not do much moving for a second consecutive day this week, though what little movement there was pushed spot values lower. When all was said and done, gold lost about a dollar while silver conceded about 15 cents or so. Platinum and palladium were also down on the day, but neither metal lost more than 10 dollars.
Stronger Stocks, Dollar Don’t Stop Metals
Something we have been seeing a lot of recently is the phenomenon of precious metals performing decently despite solid performances on the part of US stocks as well as the USD. Today exemplified that perfectly as all major US stock indexes, in addition to the USD, were seen on the up and up. Even while this is so, precious metals kept losses at a minimum.
Perhaps this will change as interest rate speculation picks up, but for now metals are showing the ability to weather most any storm.
Marine Le Pen Widens Lead
With French presidential elections looming, Europe and the world are taking particular interest in just about every news story coming from the Western European nation. As of this morning, the word was that far-right candidate Marine Le Pen has widened her lead. Le Pen has been likened on numerous occasions to newly-elected US President Donald Trump, most likely due to her outspoken nature and stance on many political issues. Of all the issues upon which Le Pen has spoken on, none has garnered more attention than her insistence on holding an EU referendum much like the one that preceded the UK’s departure from the EU. Also like Trump, Le Pen is very much opposed to the idea of Middle Eastern refugees coming to France en masse.
To make what can be a long story quite short, Le Pen represents another major question market in a region where question marks abound. Gold and silver are said to be benefiting from what is happening in France because the idea of Le Pen becoming the country’s new president is something that worries a lot of people. What’s more, just as it was with the UK, people are unsure of what will happen should France eventually depart the EU.
As we move forward closer to the election, we will be keeping a close eye on French polls. No matter the outcome, France is going to play a pivotal role in the movement of precious metals spot values through the near-term.
Harker Comments on Rate Hikes
Chair of the Philadelphia Federal Reserve, Patrick Harker, made statements on Tuesday that made it clear he would support the hiking of interest rates at the FOMC’s March meeting. This was a bit of a surprise seeing as most people are not anticipating another rate hike until the late Spring or early Summer.
There wasn’t much reaction to Harker’s comments because the minutes from the FOMC’s January meeting are going to be released tomorrow. In these minutes investors are hoping to uncover more clues as to what the near, medium, and long-term futures hold for US interest rates.
Wrap-Up
To be fair, Tuesday was not much more exciting than Monday. There was very little in the way of economic dealt, and we are continuing to see metals make moves based on different geopolitical situations. It was encouraging to see metals hold their own despite stronger outside markets, however the threat of more immediate interest rates may prove to push spot values downward. For this reason, tomorrow’s releases of the latest FOMC minutes will be one of the major talking points come this time tomorrow.
