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    JM Bullion Gold and Silver Market Update (7/5/16)

    Gold Spot Price Open: $1,351

    Gold Spot Price Close: $1,359

    Change in Gold Spot Price: +$8

    Silver Spot Price Open: $20.41

    Silver Spot Price Close: $19.93

    Change in Silver Spot Price: -$0.48

    Precious metals are still moving forward to begin this new week of trading, but gains have mostly been kept to a minimum. When all was said and done, gold gained closer to 8 dollars while silver ended up losing more than 45 cents. Platinum and palladium both lost on the day, but palladium was by far the bigger loser of the 2.

    Risk Aversion Still on the Minds of Investors

    As was made plainly clear towards the end of last week, risk aversion across the global marketplace is quite high thanks mostly to the BRExit decision. Gold and silver both rallied to close out last week, and it was clear to see that the momentum held by both precious metals was going to be sustained. This week did begin with some profit-taking after massive gains made to close out last week, but other than that things are looking up.

    Even though spot values are currently elevated, experts warn that gains can evaporate just as quickly as they appeared. Right now we are seeing investors react out of fear and, if things calm down in the near future, we may see many of the gains witnessed over the last few weeks disappear. We will have to play the waiting game to see if this comes true, but the fact of the matter is that current market conditions are very much subject to change should new information come to light sometime in the near future.

    2016 Rate Hikes Seem Increasingly Less Likely

    Ever since the UK’s decision to leave the European Union became official a few weeks ago, we have witnessed a load of changes in the outlook of not only the European marketplace, but the global marketplace as well. One of the biggest changes we have witnessed is what has happened to the rate hike outlook in the United States. Ever since the BRExit decision became official, we have heard commentary and rumors relating to the dwindling likelihood that the Federal Reserve will move to raise interest rates any more this year. This is significant because, prior to the BRExit decision, we were anticipating at least one more rate hike to take place this year.

    At this point, leading financial and economic experts do not see how the Fed could possibly raise rates any further without putting the economy as a whole into serious jeopardy. Adding to the obstacles in the way of another rate hike is the fact that a US presidential election is set to take place before year’s end. With the election taking place in November, it is difficult for anyone to envision the Fed making such a bold move just prior to someone new taking office.

    All in all, there just seems as though there is almost no chance the Fed will raise rates, and that is putting a lot of momentum in the precious metals camp. Basically, with people finding it increasingly difficult to trust the Federal Reserve, everyone is retreating and playing it safe until market conditions stabilize. Until we see a more confident grouping of global investors, precious metals spot values are likely to continue growing.

    Wrap-Up

    To begin this somewhat abbreviated week investors were not dealt a great deal of fresh information. Instead, we are seeing an investing contingent around the world that is solely focused on what the immediate future holds for their respective economies as well as that of the global economy. Right now, that much is a huge question mark that is playing nicely into the hands of precious metals as seen in rising spot values the last few weeks.

    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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