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    JM Bullion Gold and Silver Market Update (9/9/16)

    Gold Spot Price Open: $1,340

    Gold Spot Price Close: $1,331

    Change in Gold Spot Price: -$9

    Silver Spot Price Open: $19.65

    Silver Spot Price Close: $19.03

    Change in Silver Spot Price: -$0.62

    Gold and silver did not exactly impress to close out the week, but considering the circumstances their collective performances on Friday was noteworthy. When all was said and done, gold backtracked by about 9 dollars while silver finished the day downward by about 62 cents. Platinum and palladium also finished downward on the day, with platinum losing 23 dollars while palladium lost a little more than 10.

    Hawkish Fed Comments Do Little to Move Metals

    On Thursday, the market was delivered some more hawkish news relating to what the near-term future might hold for interest rates in the United States. The presidents of both the Kansas City and Richmond Federal Reserve banks made comments that said, basically, that September is as good a month as any to pursue the further hiking of interest rates. Citing a strong labor market and some other strong economic data points, both presidents made it clear interest rate hikes do not necessarily need to be delayed any further.

    On Friday, the hawkish commentary continued via Boston Fed president Eric Rosengren. While there were many comments made, the main takeaway was when Rosengren said, “My personal view, based on data that we have received to date, is that a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy.”

    With the FOMC meeting just around the corner, it will be truly interesting to see what happens. In the initial wake of both today and yesterday’s commentary, the market has not delivered much of a reaction. Metals have backtracked, but their losses are more marginal than anything else. What’s more, most people feel as though today’s losses have much more to do with consolidation after recent gains than they do the comments from Fed members today.

    Until More Data, Metals at Whim of USD

    Throughout much of this week, and throughout almost the whole of August, we have seen precious metals’ spot values directly influenced by the movement of the US Dollar. That much is likely to remain the case until we are given some fresh, fundamental data to digest.

    The European Central Bank meeting that was held earlier this week was expected to bring about some change across the global marketplace, but their inaction coupled with a lack of details ended up seeing the ECB meeting have little to no impact on the way investors think.

    As we look ahead to the next few weeks, there will be plenty of opportunities for fresh news to enter the marketplace. With the FOMC meeting, the OPEC meeting, and a spattering of economic data still to be released, there is no saying what the next few weeks will hold. What we do know, however, is that so long as the news stream remains the same as it has been, metals are going to be almost exclusively and directly influenced by the Dollar.

    Wrap-Up

    What initially looked like an upbeat week for metals quickly turned around as the last 3 days were marked with losses upon losses. When the dust finally settled, however, the reality of the situation was that metals investors can still look back at this week positively. Looking ahead, there is not very much in the way of noteworthy data expected to be dealt, but what you can expect is that Fed commentary will dominate proceedings. With interest rate hikes still on the table after all this time, any commentary from the Fed will be watched over by investors closely.
    What will be interesting to see is whether metals can bounce back to open up next week, or if consolidation will see losses pile up even higher.

    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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