Gold Spot Price Open: $1,235
Gold Spot Price Close: $1,252
Change in Gold Spot Price: +$17
Silver Spot Price Open: $18.02
Silver Spot Price Close: $18.15
Change in Silver Spot Price: +$0.13
Both gold and silver came out of the gate hot on Thursday and added value from the moment markets opened. When all was said and done, gold managed to add about 17 dollars while silver added 13 cents. Platinum and palladium were also up on the day, however no metal was able to add more than 5 dollars.
Gold Hits 15-Week High on Dovish Fed
Due to the FOMC minutes being released so late in the day on Wednesday, overseas investors did not have much of a chance to react. This morning, the final verdict was that Wednesday’s minutes release showed a more dovish Fed than anything else. As such, gold opened the day and surged forward to a near 15-week high.
To recap, the FOMC minutes showed a Fed that is content with raising rates at sometime in the near future, but is also cautious about moving too quickly. A big concern common amongst most FOMC members is the uncertainty surrounding President Donald Trump. President Trump has still not made any announcement with regard to his fiscal policy, and this is huge for FOMC members; especially when you consider he has talked extensively about overhauling the tax system in the US. As a result of these beliefs, not only did precious metals move forward, but the USD backed down after a few days of consecutive gains.
What will really be interesting is whether or not gold and silver can finish the week strongly, or if they will back right back down tomorrow.
Jobless Claims Up Again
Today’s jobless claims data provided investors with a mixed bag of sorts. While the number of Americans filing for first-time unemployment benefits last week rose by more than expected, the 4-week moving average of claims has backed down. To provide some insight, the 4-week moving average of claims is viewed as being a more accurate and current snapshot of the current labor situation.
According to the US Department of Labor, first-time claims for unemployment benefits rose by 6,000 last week. This brought the seasonally-adjusted average up to 244,000. Though no rise is a good thing, we are now at 103 consecutive weeks where the seasonally-adjusted average has remained below the 300,000 threshold. This marks the longest such streak ever recorded.
As for the 4-week moving average, it fell by 4,000 claims, bringing the seasonally-adjusted average down to 241,000. This is the best such tally since July of 1973. All things considered, the data was upbeat but was also mostly ignored by the marketplace. Metals, in particular, ignored the data as they were able to gain at seemingly every turn today.
President Trump Focus Continues
For the last week or so, President Trump seems to have kept himself out of the headlines for the most part. Unfortunately for investors, his being quiet does not help anyone decipher what the future holds for fiscal policy in the US. Just about a week ago, President Trump claimed he was on the verge of unveiling his massive tax plan, however that much has not occurred yet. Until he does talk more about fiscal policy, investors are going to be waiting on the edge of their collective seats.
Wrap-Up
Apart from the release of the most recent reading on jobless claims, Thursday was yet another mostly lackluster day across the global marketplace. Precious metals were able to benefit from the fact that the FOMC minutes were determined to be mostly dovish, but other than that there were no new inputs. As we head into the final day of the week, it will be interesting to see if precious metals can build upon today’s gains and finish with yet another week of upward movement.
