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    JM Bullion Gold and Silver Market Update (6/27/16)

    Gold Spot Price Open: $1,336

    Gold Spot Price Close: $1,330

    Change in Gold Spot Price: -$6

    Silver Spot Price Open: $17.95

    Silver Spot Price Close: $17.73

    Change in Silver Spot Price: -$0.22

    Precious metals retreated a bit on Monday after posting massive gains to close out last week. When all was said and done, gold lost about 8 dollars while silver lost a bit more than 20 cents. Platinum and palladium finished the day mixed, with platinum losing close to ten dollars while palladium gained little more than 5 dollars.

    From Rate Hikes to Rate Cuts

    As was briefly mentioned last week, the fact that the United Kingdom decided to leave the European Union had adverse effects on many aspects of the global marketplace. One of the outcomes of this referendum was that the outlook on US interest rate hikes has changed dramatically. Towards the end of last week we were seeing investors begin to come to terms with the possibility that we may see no more interest rate hikes this year. Now, with the opening of this week, we are hearing rumors that, not only are interest rate hikes not likely to happen this year, we may see the opposite. There are very few pieces of information to support this belief, but we are hearing an increasing number of people under the impression that we may actually see interest rates reduced.

    Around this time a week ago, the earliest point in time that investors were expecting to see a rate hike was in September. Now, there is barely more than a 20% chance we will see such a hike. If you look ahead to December, opinions are divided, with some people thinking we will see a rate hike while others think that we will see rates slashed.

    As far as gold and silver is concerned, the overall uncertainty created by the UK BRExit is helping boost safe-haven demand. Though this is not being reflected by spot values today, I anticipate that the momentum gold and silver currently have will translate into this being a nice 5-day trading session prior to the 4th of July holiday in the US.

    Expect Uncertainty, Nervousness to Persist

    There was very little in the way of fresh, fundamental news for investors to digest on Monday, so instead we saw the global market continue to digest what the BRExit means for the future of the global economy. The day began with the GBP falling to a more than 30-year low against the Dollar, and things did not really improve from there.

    Expect that, as this week carries on, the investing public will continue to pick apart just what the UK’s referendum decision means for investors the world over. Being that this is the last week of June trading, you can also expect that some month-end economic data will be dealt. Being that the end of June marks the end of the 2nd quarter of 2016, there is going to be a lot of markets-moving economic data dealt. For gold and silver, if the tone of US economic data is worse than expectations, gold and silver are only going to gain more momentum.

    Wrap-Up

    All in all, Monday was not the most eventful day we have seen in recent history. Very little in the way of fresh data was offered, and the marketplace continued to talk about what the BRExit means for the global marketplace. As we look forward to the rest of the week, the fact of the matter is that investors will more than likely continue talking about BRExit and its consequences. In addition, we will keep an eye out for any and all month-end economic data stemming from the US, Europe, and the rest of the world.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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