Gold Spot Price Open: $1,240
Gold Spot Price Close: $1,264
Change in Gold Spot Price: +$24
Silver Spot Price Open: $19.91
Silver Spot Price Close: $20.10
Change in Silver Spot Price: +$0.20
Gold and silver are beginning to turn this week around after managing some impressive gains today. When all was said and done, gold picked up over 20 dollars while silver was able to once more cross the $20 threshold after gaining 20 cents.
Preliminary PMI readings from China and the EU captured most of the world marketplace's attention today though they did little in the way of moving precious metals spot values. What really helped gold and silver make the gains they did was a weaker US Dollar Index and subsequently weaker US equities. Weaker equity markets here in the US translated into weaker stock market readings in Europe as well, even though Europe's preliminary PMI reading was the best the region has seen in nearly three years.
January's PMI for the EU was recorded as being 53.2; up over 1 point from December's reading of 52.1. Though these readings may be difficult to interpret, the most important thing to know is that any reading above 50 is indicative of a healthy economy. Today's European PMI reading only works to complement the slew of positive data we have been seeing out of Europe recently.
China wasn't so lucky with their preliminary PMI reading as Asia's second-largest economy recorded a weaker number in January than what was recorded in December. Compared to December's reading of 50.5, China's preliminary reading for January came in just under 50. Any reading below the 50 mark is worrisome to investors and is indicative of an economy that is on the verge of or is contracting. If anything, today's weaker outlook on China worked against precious metals' rally. Because China is the world's largest consumer of raw commodities, any poor economic reading will almost always translate into downward pressure being placed on metals.
As we bring this week to a close tomorrow and look ahead to next week's FOMC meeting, expect investor focus to shift more wholeheartedly to the possibility of further tapering measures coming as a result of the Fed's meeting.
