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    JM Bullion Gold and Silver Market Update (7/14/16)

    Gold Spot Price Open: $1,347

    Gold Spot Price Close: $1,340

    Change in Gold Spot Price: -$7

    Silver Spot Price Open: $20.43

    Silver Spot Price Close: $20.26

    Change in Silver Spot Price: -$0.17

    Precious metals lost value on Thursday after some better than expected US economic data was dealt. When all was said and done, gold lost around 7 dollars while silver ended up conceding close to 20 cents. Platinum and palladium both squeezed out gains on the day, but neither metal was able to gain more than 5 dollars.

    Upbeat US Economic Data Dealt

    Thursday brought with it a bit of upbeat US economic data, first in the form of rising producer prices during the month of June. Though most polled economists and experts predicted that prices would rise by .3%, actual statistics show that the rise in prices was .5%. If you exclude energy and food prices, core producer prices rose by the estimated .3%.

    Though prices have increased from the end of 2015 when they were nearing all-time lows, we have recently seen things begin to stagnate a bit, which is never a good sign.

    In other US economic news today, the weekly jobless claims report was released and remained unchanged from last week. The seasonally-adjusted average remains sitting at around 254,000 which is a fine spot for it to be at. Being that expectations were for weekly jobless claims to increase, today’s data is being welcomed by equities investors looking to continue this week’s rally. Basically, any number under 300,000 is viewed as upbeat and reflective of a healthy job market. The 4-week moving average of jobless claims, which is often viewed as the most accurate snapshot of how the job market is doing at a particular point in time, fell by nearly 6,000 last week from the week before.

    All of today’s data did well to pile the pressure on precious metals. Stock indexes in the US rose across the board to continue what has been a great week for not only US equities, but global equities as a whole.

    Interest Rate Hike Talk Reappears

    While it has recently been discussed that the US Federal Reserve may move to reduce interest rates before they raise them again, it does not seem like such will prove to be the case. Today we have heard murmurings with regard to there possibly being 1 or maybe even 2 more interest rate hikes before the year is through.

    Patrick Harker, who manages Philadelphia Federal Reserve Bank, was quoted as saying that there may be 2 more rate hikes before year’s end. Right now we are seeing investors price in one more rate hike, but the simple fact is that this is not even a guarantee. Should the US economy continue to perform well the likelihood of a rate hike will increase—it really is as simple as that.

    BoE Maintains Interest Rates

    The Bank of England wrapped up their monthly policy meeting today and the final result emitted no changes. While some people were expecting to see interest rates altered, the BoE left things as they were before the meeting began.

    It seems as though, with interest rates remaining untouched and a new PM being sworn in, some of the uneasiness on the part of investors has subsided. We are seeing this in the calming down of equity markets as well as through the slight pullback on the part of precious metals. Investors still have very little idea as to what to expect from the UK economy over the course of the extended future, but for now it seems as though things have calmed down from where they were at a few weeks ago.

    Wrap-Up

    Thursday was another positive day for stocks across the globe thanks to upbeat US economic data as well as inaction on the part of the BoE. As we look ahead to the final day of the week, investors do not have much to look forward to as far as economic data is concerned. Because of that, I wouldn’t be surprised to see stocks continue to gain value and head into the weekend boasting somewhat elevated positions.

    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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