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

    Gold Spot Price Open: $1,335

    Gold Spot Price Close: $1,338

    Change in Gold Spot Price: +$3

    Silver Spot Price Open: $19.69

    Silver Spot Price Close: $19.67

    Change in Silver Spot Price: -$0.02

    Gold and silver made gains on Monday, but they were realistically not anything to write home about after Friday’s losses. When all was said and done, gold added about three dollars while silver ended up losing a few cents. Platinum and palladium finished the day mixed, but neither metal moved too far from where it began the day.

    Metals Feel Pressure From Jobs Data Reaction

    As many people expected, precious metals opened up this week facing more pressure thanks to Friday’s far better than expected jobs data. In case you missed it, Friday’s Department of Labor report showed that far more jobs were created in July than was expected. Because the data was released in the late morning in the US, many investors around the world did not have a chance to react to it. For this reason, the US Dollar opened up the day and week in impressive fashion and metals were beaten down even further. Of course, metals ended up improving a bit before day’s end, however things did get off to a bit of a rocky start.

    Perhaps bigger than the data itself is the fact that it now has so many investors under the impression that rates might be hiked at least one more time before the year is through. Though most experts have their doubts about that, it is not unfathomable to think that the Fed will move to raise rates at least one more time in 2016. So long as this type of speculation persists, the precious metals market is going to have a tough time moving forward. Today was a perfect example of that as a stronger USD Index continued to pressure both gold and silver.

    Because of gold and silver’s impressive gains throughout much of the month of July, there is a huge risk for spot values.

    Spattering of European Economic Data Dealt

    Being that we are in the middle of August, it should come as no surprise that this 5-day trading session got off to such a slow start. This round of data got off to a surprising start seeing as investor confidence improved even more in the wake of BRExit. Though the rise in investor sentiment was nothing of great significance, it is encouraging to see this figure rise despite the tumultuous events that have recently unfolded across the Eurozone.

    In addition to this, investors received another batch of good news as German industrial production was reported as having improved during the month of June. Officially, German industrial production improved by almost 1% from May to June. This was the fastest single-month growth recorded in almost half a year and really does well to drive home the point that the German economy is really helping keep the European region afloat.

    Wrap-Up

    Overall, there was very little in the way of fresh data making its way to the global marketplace on Monday. Apart from the small batch of European data dealt, the market was still focused on the overly upbeat batch of jobs data delivered by the US Department of Labor on Friday. Being that we are now well into the month of August, you can expect that many of the upcoming days to be equally quiet.

    For gold and silver, this week has gotten off to a poor start and it is not looking like there will be much room for recovery. So long as investors are speculating with regard to the possibility of further interest rate hikes before the end of the year, metals will have a tough time making gains and an even tougher time sustaining those gains.

    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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