Gold Spot Price Open: $1,313
Gold Spot Price Close: $1,304
Change in Gold Spot Price: -$9
Silver Spot Price Open: $19.93
Silver Spot Price Close: $19.63
Change in Silver Spot Price: -$0.30
Precious metals, with the exception of platinum, traded significantly downward throughout a majority of the day on Friday. When all was said and done, gold lost about 8 dollars while silver fell by about 30 cents. Palladium fell in similar fashion to gold while platinum added almost ten dollars today.
Metals Fluctuate On Russia-Ukraine Developments
Before US markets opened today, precious metals were seen conceding a lot of value on the news that Ukraine might actually allow a Russian convoy to cross over the border. As investor risk appetite kicked up, US equities were able to begin the day on solid footing and even improve marginally from there. Shortly thereafter, however, equities in the US took a nosedive on reports that Ukrainian forces had attacked and partially destroyed a number of armed vehicles which had crossed over the Russian border.
As a result of the reported violence, precious metals began trimming losses. By day’s end, gold and silver were still posting daily losses, but were up a bit from Friday’s lows.
Matt Maley, strategist at Miller Tabak & Co. LLC, commented on the situation in a phone interview with Bloomberg. He said, “People were worried Putin’s dovish comments may not last long, but it appears it hasn’t lasted more than a couple days. When you get something like that, it’s really not good.”
Dollar Remains Still After Dovish Federal Reserve Remarks
The USD took a significant dive on Friday to end up finishing the week in just about the same position it was in when the week got underway. The reason for the Dollar’s collapse came today in the form of some dovish remarks made by members of the Fed. Just today, Minneapolis Federal Reserve president Narayana Kocherlakota commented on weak labor markets in the US. What’s more, she also claimed that inflation is bound to remain subdued for the next few years.
These statements could be perceived as meaning that perhaps interest rates in the United States may not be on the rise as soon as most were expecting. If that is, in fact, the case, precious metals may have just been gifted some underlying support going forward. So long as US economic data remains shaky over the coming weeks, the sentiment regarding the raising of interest rates in the United States may shift dramatically.
Wrap-Up
It’s no secret that this week has been decidedly quieter than any other in recent weeks. With such little economic data made public and many people using the month of August as a time for vacation, there was no doubting that this was going to be a slow 5-day trading session. Gold, which has traded between $1,280 and $1,320 this week, is expected to do much of the same next week. With that said, the price action of gold and all other precious metals may be severely impacted by any of the ongoing geopolitical situations, especially the one unfolding in Ukraine.
