Gold Spot Price Open: $1,309
Gold Spot Price Close: $1,308
Change in Gold Spot Price: -$1
Silver Spot Price Open: $19.94
Silver Spot Price Close: $20.06
Change in Silver Spot Price: +$0.12
Precious metals have been trading sideways for a majority of the day, not making very large gains nor posting very large losses. When all was said and done, gold dropped by about a dollar while silver was able to add a few pennies.
Gaza Ceasefire Holds….For Now
As of the writing of this post, an Egyptian-brokered peace deal between Hamas and Israel was continuing to be honored by both sides. After weeks of intense fighting and countless casualties, this is one of the first real efforts anyone has made at restoring and preserving peace. Though it is not widely expected that things will remain quiet on the Gaza Strip for long, it is nice to see citizens attempting to revert back to their normal daily routines.
As you could have probably guessed, the ceasefire in Gaza is not at all working in the favor of precious metals. Investors are exhibiting more of a risk-on attitude this morning as both the US Dollar and equities continue surging forward.
Also not helping precious metals at all is the fact that Russian troops stationed along the border with Ukraine have completed their military exercises and are no longer being looked at as a potential invading force. The more than 20,000 combat-ready troops are slowly but surely dispersing and simultaneously lessening tensions surrounding the region and the situation. Despite the market’s focus slowly shifting away from ongoing geopolitical events at present, I am willing to bet that Ukraine and the Middle East will be back in the headlines before long.
US Stocks, Dollar Continue Trending Higher
Shortly after markets opened in the US on Monday, both equities and the US Dollar were seen moving sharply upward. This follows closely in the wake of European equities also opening the week in a much better position due to the decreased worries surrounding the situation in Ukraine.
With this week expected to yield little in the way of markets-moving economic data, it is very likely that investors the world over will continue to focus on the progress, or lack thereof of world equity markets and the US Dollar. While an increased risk-appetite exhibited by investors to open up the week has not done too much in the way of helping precious metals, it is an encouraging sign to see spot values remain at or near Friday’s closing numbers despite the surge forward made by the USD and US equities.
Attempting to predict what you can expect from the market this week was Patrick Spencer of Robert W. Baird & Co. when he was quoted as saying that “the buying that we saw last week should follow through this week. The world will likely welcome a more decisive U.S. on issues like Iraq. Ukraine for the moment is less contentious.”
Wrap-Up
As we look forward to the duration of the week, there really isn’t much in the way of economic data for investors to look forward to. Being that we are now effectively heading towards the end of the month, the market is, in all likelihood, going to remain quiet as investors use the last few official weeks of summer as a time to take vacations. Still, there will undoubtedly be plenty for investors to discuss and mull over this week as a number of geopolitical situations are bound to make their way to the headlines.
