Gold Spot Price Open: $1,190
Gold Spot Price Close: $1,195
Change in Gold Spot Price: +$5
Silver Spot Price Open: $15.86
Silver Spot Price Close: $15.93
Change in Silver Spot Price: +$0.07
Precious metals received a boost today thanks to some bullish outside market forces, though gains were nothing too great. When all was said and done, gold picked up about 5 dollars while silver gained close to ten cents. Platinum and palladium also managed to post some small gains themselves.
Bullish Outside Market Forces
Today, as has been the case for a majority of the week, there wasn’t too much in the way of markets-moving economic data to speak of. The US Dollar Index backed back down after recent gains, and because metals have been putting forth a rigid inverse correlation with the greenback as of late, it is easy to see why gains were made. The Dollar is continuing to edge closer to the Euro, but the part two weeks have seen a lot of choppy trading on the part of the USD.
Crude oil, which was not all that long ago near multi-year lows, hit a fresh 4.5 month high today. This was more good news for gold and silver as crude oil, being a leading commodity, tends to bring precious metals along whenever it moves. The eyes of the investing world will remain on the crude oil market for the foreseeable future simply because it means so much to so many investors.
Some Downbeat Economic Data from Europe
Unless you simply haven’t been paying attention, you know that the last few weeks have seen nothing but positive economic news coming from Europe. This morning, however, the tide shifted a bit as March’s composite PMI came back weaker than Fenbruary’s reading. Officially, March’s PMI came in at 53.5, down from a reading of 54 in February. Experts and market analysts were expecting a .4 rise during March, so it is clear to see why this report is being touted as a miss.
In other news from Europe, Greek debt negotiations remain in the headlines as Greek, EU, and IMF officials continue to try and hammer out their differences. Despite the talks continuing to press forward, the fact of the matter is that no real progress is being made. If things continue along this path, you can expect investors to anticipate Greece’s departure from the EU. This would be a major development and one that affects the spot values of gold and silver considerably, but there is no guaranteeing that such a scenario will ever come to fruition.
Greek bond yields continue to rise this week as the attitude of the marketplace is one that is beginning to become convinced that Greece’s days as part of the EU are numbered. Earlier this week it was announced that Greece’s central bank ordered all government entities to commit all extra cash to the bank. This is a sign that a serious cash crunch is developing for the small Mediterranean nation.
Wrap-Up
As we look ahead to the final day of the trading week, it is looking a lot like this 5-day trading session will have been more of a non-factor than anything else for precious metals. The market will continue focusing on what is happening to Greece, but so far very little reaction has stemmed from the debt talks. Looking ahead to next week, the FOMC meeting and all that comes with it is sure to take over the headlines for quite a long time. With some luck, investors will be dealt some fresh information regarding the future of interest rates in the United States.
