Gold Spot Price Open: $1,185
Gold Spot Price Close: $1,190
Change in Gold Spot Price: +$5
Silver Spot Price Open: $16.86
Silver Spot Price Close: $17.05
Change in Silver Spot Price: +$0.19
Precious metals added to last week’s gains on Monday as spot values continue to approach pivotal price points. When all was said and done, gold added around 5 dollars on the day while silver, which eclipsed the $17/ounce threshold, gained just shy of twenty cents. Platinum and palladium finished the day mixed, with platinum adding near ten dollars while palladium finished the day not too far from where it started.
USD’s Continued Downturn Benefits Metals
For the past ten days or so, the USD Index has been on an almost steady downward trajectory. Finishing Friday with decent losses was just about the last way greenback bulls would have liked to head into the weekend, and as soon as markets opened today things only got worse. When the dust finally settled, the USD Index was down by more than nine-tenths of a percent. The Dollar’s continued decline combined with crude oil prices that were, if nothing else, not declining meant that precious metals were always going to have a nice start to the week.
Perhaps the biggest takeaway for gold bulls is the fact that the yellow metal hit a two week-high during the midday hours. This is a great sign and has many experts convinced that this run may just have a bit more gas. As we head further into the week, all eyes will be on the USD Index in order to see if it can bounce back at all from recent losses.
Greece Back In the Headlines
When European Union officials and Greek government officials reached a debt payment agreement about a month ago, I assured you that Greece would not stay out of the headlines for long. This much has come true thanks to negotiations between European Union and Greek officials regarding long-term bailout money picking back up this week.
Though it is still early, reports from across Europe so far have made it fairly clear that the talks are not making much headway. The eyes of the investing world will remain on Greece for the foreseeable future, especially because the new Greek PM is set to meet with Chancellor Merkel sometime during the midweek. Before long, I imagine investor discussions regarding the possibility of Greece making an exit from the EU will be prominent across the global marketplace.
Stocks Back Down Slightly
Stock Indexes in the United States finished down across the board on Monday and were yet another factor aiding metals’ trek forward. Recently, stocks in the US have taken on a bit of an inverse relationship with the Dollar, but that much did not hold true by day’s end on Monday. This week, on the whole, is supposed to be fairly quiet from an economic data standpoint, so I expect that investor activity will follow suit.
Being that we are just about at the end of 2015’s first quarter, most investors will be content to hold their positions until the upcoming slew of quarterly economic reports. Within a week or two, I anticipate that stocks will see a bit more volatility as they will be readily affected by the stream of economic data. Data from the US will be especially important as investors continue to ponder the prospect of interest rate hikes taking place sometime this summer.
Wrap-Up
Precious metals continued their rally to begin the week, but one can only wonder whether recent gains are going to be retained, or if a USD surge will wipe them away. This week is expected to be quiet from an economic data standpoint so I imagine the focus for investors will continue to be on developments in Europe and the progress, or lack thereof, of the US Dollar.
