Gold Spot Price Open: $1,235
Gold Spot Price Close: $1,233
Change in Gold Spot Price: -$2
Silver Spot Price Open: $16.31
Silver Spot Price Close: $16.24
Change in Silver Spot Price: -$0.07
Gold and silver did not do much to start out the week, but what movement was posted was mostly in the downward direction. When all was said and done, gold lost about two dollars while silver lost little more than 5 cents. Platinum and palladium also moved ever so slightly downward, by mostly negligible margins.
Oil Continues to Stagger After Fruitless OPEC Meeting
Heading into this past weekend, one of the biggest stories was the impending meeting of oil-producing nations. This OPEC meeting was rumored to be focused solely on cutting oil production or ceasing it altogether for a time. There have been quite a few of these types of meetings in the past, and like the one this weekend they have all failed to yield any tangible results. Not only has the price of crude oil fallen for most of the past year or more, Iran has also recently had sanctions lifted allowing the nation to sell to Western markets that have been off-limits for decades now.
On Monday, the response was not quiet at all as the spot price of crude oil fell to new monthly lows. The main reason behind the drop was the fact that this weekend’s meeting yielded no results. Something interesting to note was the fact that Saudi Arabia demanded Iran join future talks despite the two countries having been at the center of recent political disputes. In the opinions of many, there is very little chance that Iran will join any OPEC-related talks, especially those relating to cutting oil production.
Precious metals fell on Monday, even if only slightly, thanks to their being pulled down by crude oil, which is a leading commodity. Still, with the future of the global economy remaining as uncertain as ever, it would not be out of the question to think that safe-haven demand for gold and silver might soon prop up spot values. Though precious metals have performed poorly over the last few weeks, most analysts do not find it out of the question to see gold make a rebound closer to the $1,260/ounce mark in the very near future.
Stocks Open the Week Positively
Disney’s near 2% gain on Monday helped push most major US equity indexes higher to begin the week. Fueling Disney’s gains were an upgrading of the stock from “hold” to “buy” status by Pivotal Research group. In addition, market experts point towards a new theme park opening in China this June, upcoming film releases, and a restructuring of Disney-owned ESPN as more validation of investors’ increased optimism in Disney stock.
The positive performance of the Jungle Book movie, which released this weekend, only helped push Disney’s stock higher today. Though it may sound difficult to believe, the entertainment giant’s performance alone was enough to help most major US equity markets push higher. It will be interesting to see how equities do throughout the rest of the week as they will likely continue to pressure metals should performances such as those put forth today continue.
Wrap-Up
Monday was not the most eventful day we have witnessed in recent weeks, but did well to set the tone for the next four days of trading. Crude oil and its massive surplus will assuredly remain a staple in headlines, and it will be intriguing to see what kind of impact the commodity’s performance continues to have on both gold and silver.
