Posted on January 12, 2015
Gold Spot Price Open: $1,225
Gold Spot Price Close: $1,235
Change in Gold Spot Price: +$10
Silver Spot Price Open: $16.58
Silver Spot Price Close: $16.66
Change in Silver Spot Price: +$0.08
Precious metals were able to build off of last week’s gains on Monday, and got this week off to a wholly positive start. When all was said and done, gold managed to gain around 10 dollars while silver added closer to ten cents. Platinum and palladium both also gained today, by about ten dollars apiece.
Though it should not come as much of a surprise, the spot price of crude oil took another significant hit today. Now hovering near a 5.5 year low, the price of a barrel of oil is not looking like it is going to increase anytime soon. For gold and silver, this has become good news simply because the lower price of crude oil has been battering energy shares. Thanks to energy companies taking massive hits, the overall confidence in US and global equity markets has been shaken.
Now, there is a lot of talk claiming that perhaps stock markets in the US have topped out and are gearing up for a corrective tick lower. Of course, it is too early to tell if stocks are set for a permanent move lower or not, but we will surely keep our eye on the price action of all major global equity markets. For precious metals, the continued uncertainty on the part of investors with regard to the global economy will persist as a factor helping keep spot values afloat.
In a report from the Organization for Economic Cooperation and Development released earlier today, the OECD commented on what is to be expected from a number of global economies as far as growth is concerned during 2015. The report maintained that growth in North America (namely Canada and the United States) would remain stable throughout this year, while growth in countries across Europe is expected to remain poor.
For India and China, expectations are that the two economic giants will use 2015 as a year of recovery. With recent economic data out of China being particularly poor in nature, today’s OECD report was welcomed by investors who are eager to see the Chinese economy stabilize once more.
In other news relating to China and deflation, the spot value of copper hit a 4.5 year low during the early morning hours. Recently, the declining value of crude oil in conjunction with the economic downturn of sorts that has struck China has taken its toll on the price of copper. With numerous industrial applications, it really isn’t too surprising that China’s recently poor economy has pushed copper’s value downward.
As we look ahead to the rest of this week and beyond, there is still a good quantity of economic data that is set to be made public. On top of that, the attention of the global marketplace has already shifted a bit to the upcoming European Central Bank meeting. Scheduled for January 22nd, the eyes of the world will be on the ECB as it is widely believed that they will announce the implementation of a bond-buying initiative none too dissimilar from the quantitative easing we experienced for the last few years in the United States.