Gold Spot Price Open: $1,337
Gold Spot Price Close: $1,349
Change in Gold Spot Price: +$12
Silver Spot Price Open: $20.21
Silver Spot Price Close: $20.38
Change in Silver Spot Price: +$0.17
Precious metals rebounded a bit on Wednesday after conceding value to stronger equities a day earlier. When all was said and done, gold gained about 12 dollars while silver ended up gaining roughly 17 cents. Platinum and palladium gained today as well, with platinum improving by only a few dollars while palladium picked up more than 20.
Metals Gain on Stimulus Expectations
Gold, silver, and most other precious metals were able to regain some ground on Wednesday after dipping to their lowest points in nearly two weeks a day earlier. Helping metals was the idea that economies around the world will move to either increase their stimulus programs or introduce new programs altogether. Either way, monetary stimulus is almost always a good thing for precious metals.
In addition to all of this talk about stimulus, we are still seeing a global economic marketplace that is as uncertain as it possibly can be. Thanks to the BRExit vote, nobody has any idea what is going to happen in Europe and the UK as far as their economies are concerned. Gold has picked up more than $100 since the BRExit vote and is looking just as appetizing to investors who fear what the near-term future holds.
Bargain Hunting Pushes Metals Higher
Since we have seen gold and silver gaining at just about every turn since the BRExit vote, it is an interesting prospect whenever these metals lose value. That is exactly what happened through Monday and Tuesday, and those small losses prompted some bargain-hunting buying which helped buoy spot values today.
Gains by metals might have been a bit larger if global stock markets had not continued to perform strongly on Wednesday.
Crude oil prices were lower on Wednesday too, and this once again played in the favor of precious metals. Pushing crude oil spot values lower is the International Energy Agency reporting that global stockpiles are nearing all-time highs. It seems as though we are slowly but surely heading back to the position we were in earlier in the year when a global supply-glut was driving spot values down at every turn.
When we reconvene tomorrow, the main topic of discussion will be the Bank of England’s monetary policy meeting. As it stands, there is some people who believe that the BoE will move to lower interest rates, but this is not set in stone quite yet. With a new Prime Minister also being sworn in on Thursday, there is a possibility that the BoE will hold on moving rates at all.
Wrap-Up
All in all, today was a step in the right direction for metals, which have performed poorly through the first few days of the week. The USD Index was lower today and that helped gold and silver gain some ground. As we look ahead to the rest of the week, there is some economic data due out, but none of it is expected to have much of an impact on the economy.
Something that will also be interesting to see is whether weekly jobless claims improved or not from the previous week. Recently we have seen the labor market in the United States showing signs of strength, and investors are hoping that will continue. Unfortunately for precious metals, however, a positive performance on the part of the employment sector will, in all likelihood, stack up the pressure.
