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    JM Bullion Gold and Silver Market Update (8/22/16)

    Gold Spot Price Open: $1,343

    Gold Spot Price Close: $1,341

    Change in Gold Spot Price: -$2

    Silver Spot Price Open: $19.39

    Silver Spot Price Close: $18.88

    Change in Silver Spot Price: -$0.51

    Precious metals ended up spinning their wheels for the most part on Monday and did not do much in the way of making any gains. When all was said and done, gold lost about 2 dollars while silver conceded another 50+ cents. In fact, silver is now sitting below the $19/ounce threshold and that is a bit of a psychological hit for investors. Platinum and palladium performed about the same as gold and silver and ended up losing about ten dollars apiece.

    Bearish Outside Markets Weigh on Metals

    Through these historically slow summer months we have thus far found very little in the way of upbeat news for precious metals spot values. Today, the outside market we are seeing put pressure on metals is the USD Index, which opened up the week higher. Seeing the USD Index moving higher on Monday was not all that surprising seeing as it hit a 7-week low last week. Today’s gains are mostly a corrective pullback, so it will be interesting to see if they continue to pressure metals, or if things will ease up upon markets opening on Tuesday.

    Pulling gold lower on Monday was the fact that hopes for an OPEC deal at next month’s meeting are fading. Investors the world over are slowly but surely coming to terms with the fact that previous OPEC meetings have yielded little in the way of tangible results and that there is little to suggest that this time around will be any different. Saudi Arabia’s energy minister was recently quoted as saying that they would do what it takes in order to stabilize the market, however these words are not so easy to believe or buy into.

    Market Looks Forward to Yellen’s Speech

    There is a massive central bankers meeting taking place in Jackson Hole, Wyoming this week, and the highlight of the meeting will be when Janet Yellen takes the stage to speak. As you could have probably guessed, investors the world over will be tuning into Yellen’s address in order to see if any clues will be given with regard to when interest rates might be hiked again.

    Though this speech is highly anticipated, it is not going to happen until Friday afternoon so investors can do a lot of speculating between now and then—and I am confident that this is exactly what will happen.

    Being that there is little to nothing in the way of markets-moving economic data expected to be released from the United States this week, you can expect that things will remain generally quieter. For gold and silver, the recently calm and lackluster marketplace has not meant good things for spot values. I see no reason why that will change this week, and it will be interesting to see how far spot values fall between now and the end of the week. Barring any significant change to policy here or elsewhere around the world, there is not much out there to make us believe that the current trajectory of spot values will change entirely too much.

    Wrap-Up

    All in all, Monday was a typically slow start to the week. For a few more weeks we expect that such will remain the case as very few pieces of fresh, fundamental data have surfaced or are expected to surface. If precious metals continue to keep falling, it will be truly interesting to see how investors react. For now, however, there is no real reason why investors should panic, even in light of silver falling below the $19 mark.

    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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