Gold Spot Price Open: $1,327
Gold Spot Price Close: $1,316
Change in Gold Spot Price: -$11
Silver Spot Price Open: $17.79
Silver Spot Price Close: $17.75
Change in Silver Spot Price: -$0.04
Gold and silver finished the day mixed as some stronger than expected US economic data ended up confusing the marketplace. When all was said and done, gold lost around 11 dollars while silver ended up losing roughly 4 cents. Platinum and palladium also finished mixed, but platinum moved slightly downward while palladium added more than 10 dollars.
First-Quarter GDP Revised Upward
A report from the US Commerce Department published today indicated that the US economy grew by little more than was initially reported a month or so ago. The first reading showed that 1st-quarter GDP grew by .8%, but the revised data ended up showing growth of little more than 1%. Though it is always good to see previous data revised upward, the fact of the matter is that today’s upward revision was really nothing out of the ordinary and did not bring about much of a reaction from investors.
The Commerce Department’s statement read, in part, “The increase in real GDP in the first quarter reflected positive contributions from personal consumption expenditures, residential fixed investment, state and local government spending, and exports that were partly offset by negative contributions from nonresidential fixed investment, private inventory investment, and federal government spending.”
All in all, today’s upward revision was good in that it seems as though the US economy is headed in the right direction, but it is disappointing due to the fact that the upward revision was not nearly enough to cause a stir amongst investors. Still, as we move forward, we are still witnessing a US economy that is far outpacing most other major economies around the world.
Also reported out of the US today was stronger consumer confidence for the month of June. According to the US Conference Board, the index which ranks consumer confidence jumped from a reading just shy of 93 in May to a reading of 98 in June. This is a massive jump and is being largely attributed to an attitude that holds now is a great time for employment and an even better time for businesses in general. Though we are certain that recent developments may have hurt this confidence, the June reading is nothing to scoff at.
Gold, Silver Fall as Markets Stabilize
Global stock and currency markets traded flatter today than they have at any point in the last 4 or 5 days thanks to a general calming across the global market. The British Pound and Euro currencies are still in low positions relative to where they have been over the past 12 months, but the losses they incurred towards the end of last week seem to have been put to a halt.
As we look forward to the rest of the week, it will be interesting to see if safe-haven assets continue to lose value, or if they will be able to hang on to the momentum created by the BRExit vote. For now, both gold and silver are in relatively lofty positions and will be looking to build on that. Of course, this all depends upon the tone of economic data, as there will be quite a bit of it over the next week or so.
Wrap-Up
All in all, Tuesday did not bring much in the way of markets-moving economic data and thus we had a pretty quiet day. Looking ahead to the rest of the week, you can expect a greater influx of economic data as the end of the month is fast-approaching. In addition, we will also keep a close eye on what is happening across the pond both in Europe and the UK as a whole.
