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    JM Bullion Gold and Silver Market Update (9/21/15)

    Gold Spot Price Open: $1,141

    Gold Spot Price Close: $1,135

    Change in Gold Spot Price: -$6

    Silver Spot Price Open: $15.26

    Silver Spot Price Close: $15.27

    Change in Silver Spot Price: +$0.01

    Gold and silver finished Monday mixed, but it was clear to see that the bearish market we have witnessed over the past few months might finally be fading away. When all was said and done, gold retreated by about 6 dollars while silver added a penny or two. Platinum followed gold and ended the day down by more than ten dollars while palladium managed to add almost the same amount.

    Gold Loses After Gains

    After hearing that the bearish market might finally be evaporating, you might be intrigued as to why the yellow metal finished the day having accrued losses. According to many experts, today’s losses are nothing more than a correction after sizable gains concluded last week. The fact that US stocks generally performed well also hurt gold to begin this fresh week of trading. Despite the fact that market conditions may be a bit more favorable for gold, the reality of the matter is that lingering speculation regarding interest rates is going to continue actively working to bring spot values downward.

    In an interview on Monday, Federal Reserve of Atlanta president Dennis Lockhart made it clear that investors can still expect interest rates to be risen sometime this year. James Bullard, president of the St. Louis Federal Reserve, was a bit less cryptic and suggested that rates very well might be risen at the Fed’s next meeting in October. The still-lingering possibility of a Fed interest rate hike in 2015 only worked to strengthen the greenback even further. And that, right there, is about exactly what we have been dealing with for the past several months. No matter how far forward precious metals venture, it seems as though a stronger Dollar or depreciating crude oil is always going to keep metals in check.

    Dollar on the Rise, Metals Under Pressure

    As was already touched upon, the US Dollar is only seeming to grow in strength with each passing week. Today saw the greenback do particularly well, which in turn ended up weighing on precious metals spot values. There wasn’t much in the way of economic data released today, so all in all things were a bit quiet for US investors. In addition to gaining on the belief that interest rates are still going to be risen this year, the greenback also benefited from a growing belief that the European Central Bank will soon further ease up monetary policy for the region.

    ECB president, Mario Draghi, is expected to speak on Wednesday and investors the world over will like to hear what he has to say. Thanks to the Fed’s reluctance to raise rates at this month’s meeting, the pressure is now being put on European officials, who were banking on raised interest rates to strengthen the Dollar and further weaken the Euro. Now that those interest rate hikes have not come to fruition, there are a number of experts who feel as though the ECB will have to actively ease monetary policy even more than they have already.

    Wrap-Up

    As we look ahead to the rest of the week, very few big pieces of information are expected to be made public. Investors will be paying close attention to what Mario Draghi has to say on Wednesday, but other than that you can expect to hear mostly speculation regarding interest rate hikes. What we do know, however, is that while currently quiet market conditions are not necessarily killing precious metals spot values, they are assuredly doing almost nothing in the way of boosting them.

    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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