Gold Spot Price Open: $1,223
Gold Spot Price Close: $1,236
Change in Gold Spot Price:+$13
Silver Spot Price Open: $17.58
Silver Spot Price Close: $17.68
Change in Silver Spot Price: +$0.10
Precious metals were moving upward to start the new week thanks, in large part, to worries regarding the uncertainty of US politics. When all was said and done on Monday, gold gained 13 dollars while silver added about 10 cents. Platinum and palladium began the week impressively, but lost towards the end of the day. Both metals finished right around where they began the day.
Political Uncertainty Taking Toll on Stocks
There wasn’t much in the way of fresh economic data for investors to talk about on Monday, but that did not stop investors from worrying about a host of issues. For one, last week saw Donald Trump do away with some Dodd-Frank banking regulations that were put in place following the 2008 global financial crisis. This was big news to investors, who are viewing this move by the new President as a rash and misguided one.
What’s more, President Trump has been taking to Twitter to fire a barrage of tweets at the judge who put a hold on Trump’s travel ban, which restricted the immigration of people stemming from 7 nations in the Middle East and Africa. In essence, Donald Trump acting the way Donald Trump has always acted is making investors nervous. Most people thought that the Trump we saw on the campaign trail would not be the same Donald Trump we saw in the Oval Office, and we are quickly finding out that such is not the case. President Trump is acting just like he did during the whole of his campaign, and this is doing a lot to boost safe-haven demand.
President Trump is scheduled to meet with Japanese Prime Minister Shinzo Abe sometime this week, and that meeting will be watched very closely. With Donald Trump being such an outspoken critic of China, it is no surprise that he is getting what looks to be an early start at strengthening relations with Japan.
Jobs Data Still Being Discussed
Thanks to Monday being a fairly slow day across the global marketplace, most people were still discussing Friday’s non-farms data. Though the figures released by the US Department of Labor showed robust job growth last month, the key figure that stuck out was the fact that wage growth was not so strong. As a result, there is a growing number of investors who feel as though the Fed may have to hold off on raising rates, perhaps until April or May. This growing belief is playing right into the hands of rising safe-haven demand.
The USD Index performed a bit better on Monday than it did during the whole of last week, however it is still hovering just above a more than 2-month low. As you might expect, the continued weakness on the part of the greenback is very much playing in the favor of precious metals’ spot values. At this point there is nothing out there that makes experts think the Dollar is going to move upward in any sort of hurry.
Wrap-Up
As has been the case for the past few weeks, this week will see a majority of the marketplace’s attention placed on anything and everything President Trump has to say. Whether it be his meeting with Japan’s PM or further efforts to reinstate his travel ban, there is no doubting that Trump will be in the news one way or another. At this point, that seems to be like a positive thing for gold and silver. Other than that, there isn’t a wealth of economic data expected to be dealt this week.
