Gold Spot Price Open: $1,242
Gold Spot Price Close: $1,237
Change in Gold Spot Price: -$5
Silver Spot Price Open: $19.93
Silver Spot Price Close: $19.88
Change in Silver Spot Price: -$0.05
Gold and silver both continued along yesterday’s downward trend amid another quieter day of trading. When all was said and done, gold lost roughly 5 dollars while silver lost only five cents.
Today played host to even fewer economic and geopolitical events which kept the technical bears in charge of the precious metals market. As investors speculate more readily about the future of Quantitative Easing, a continued lack of fundamental inputs means that both gold and silver will have a hard time doing anything other than continue to decline in value, even if only slightly.
With the next FOMC meeting a little less than a week away most market analysts won’t be surprised if things stay quiet until the conclusion of the meeting. In case you missed it, a report surfaced yesterday from the Wall Street Journal saying that next week’s FOMC meeting will result in another $10 billion reduction to the Quantitative Easing policy. If another reduction does take place, the Fed will have reduced its monthly bond-buying from $85 billion to $65 billion in under two months.
More positive news surfaced out of the EU today, this time with regard to ten-year Spanish notes. The report claimed that demand for the notes is on the rise and has been for a while now. This report complements one from Tuesday saying that demand for Portuguese and Irish government bonds is also on the rise. We are starting to see a trend in European economic data where smaller, historically weaker economies are showing more recent signs of strength. In the past, the only economy worth mentioning out of Europe was the German one, but now we are seeing places like Ireland, Poland, Portugal, and Spain show signs of renewed economic strength. Investors in Europe and elsewhere around the world will hope to see the EU continue along this upbeat economic trend.
