Gold Spot Price Open: $1,135
Gold Spot Price Close: $1,130
Change in Gold Spot Price: -$5
Silver Spot Price Open: $14.61
Silver Spot Price Close: $14.72
Change in Silver Spot Price: +$0.11
Precious metals finished the day posting mixed results which, quite fittingly, matches the mixed economic data we received on the day. When all was said and done, gold lost about five dollars while silver managed to gain more than ten cents. Platinum fell by a dollar or two on Tuesday while palladium picked up nearly ten.
US Home Prices Decrease Unexpectedly During July
According to Standard & Poors, home prices in major metropolitan areas decreased during the month of July. The official report is titled the S&P/Case-Shiller 20-City Composite Home Price Index was reported as falling by .2% on an annualized basis. This directly matches the decrease we saw in June and goes against expectations, which held that house prices would increase during the month of July. All in all, this is not the most important piece of economic data we will receive in the near future, but it is definitely eye-raising in some regard.
The tables were turned a short while later upon the release of a September consumer confidence report which indicated that US consumers are feeling pretty comfortable with current economic conditions at present. The Conference Board, who published the report, said that their consumer confidence index hit an even 103 in September–up from the 101.3 recorded only a month earlier. This data outweighed the housing prices bit simply due to the fact that experts were anticipating that the consumer confidence index would sink below 100. Instead, a nice gain was realized. The US Dollar initially rose upon the release of the upbeat consumer confidence piece, but a rallying Euro forced the greenback to come to terms with more modest gains on the day.
Platinum Continues to Slide on VW Scandal Worries
The spot value of platinum fell below $900 for a short while on Tuesday for the first time in more than 5 years. Though the metal managed to finish the day just above the $900 threshold, this is the first time since January 2009 that we have seen the value of platinum dip so low. As you may or may not be aware, a scandal involving car manufacturer Volkswagen is pushing the value of the metal downward as investors fear the unfolding scandal may have a negative impact on future diesel auto purchases. This all matters for platinum because the metal is used in diesel vehicles’ catalytic converters, which help make the car’s emissions a bit less harsh on the environment.
In addition to fears that the overall interest in diesel vehicles may decline, experts are also worried about platinum due to the perceived overproduction of the metal in South Africa over the past 12 months. Being that this VW scandal is far from resolved, I am sure we will be reporting on further developments as the days and weeks push forward.
Wrap-Up
As if the first few days of the week have not made this obvious already, the marketplace is quickly and noticeably turning its collective back on precious metals. To put it simply, investors, especially those in the US, are seen being more pro-risk and are not necessarily interested in the safe-haven qualities of gold, silver, and other precious metals. As we look ahead to the last few days of the week, I anticipate that the main focus for investors will continue to be any and all economic data released from the United States.
