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    JM Bullion Gold and Silver Market Update (1/24/17)

    Gold Spot Price Open: $1,218

    Gold Spot Price Close: $1,211

    Change in Gold Spot Price: -$7

    Silver Spot Price Open: $17.26

    Silver Spot Price Close: $17.06

    Change in Silver Spot Price: -$0.20

    Precious metals ended up backtracking to some extent on Tuesday, but, overall, the marketplace appears conducive to metals making gains through the near-term. When all was said and done, gold lost about 7 dollars while silver lost roughly 20 cents. Platinum and palladium, on the other hand, performed well before falling back to earth and finishing the day about even.

    UK Supreme Court Ruling Muddies Brexit Situation

    The news began early on Tuesday once investors received word that the decision for the UK to exit the European Union is in the hands of the UK’s parliament. Today, the UK Supreme Court decided that the decision to begin the Brexit process is something that cannot alone be left in the hands of PM Theresa May. Instead, parliament is going to need to vote on how, exactly, the Brexit process will proceed.

    Despite May repeatedly reiterating the fact that she wants the UK to leave the EU completely and totally, that cannot happen so cleanly. Even though May is dead-set on leaving the EU entirely, there are plenty of politicians that want to at least remain partial members of the EU. So, what looked like a fairly cut and dry situation is quickly panning out to be anything but that.

    In reaction to Tuesday’s ruling, the Pound held itself within a tight range before ultimately succumbing to a US Dollar. For gold and silver, the Supreme Court ruling was an interesting one to pick apart. On one hand, the US Dollar made gains against the GBP, but a stronger US Dollar almost always works against precious metals to some extent. Despite this, the USD is still hanging around a 2-month low after November and December’s rally. As we move forward, it will be interesting to see when the UK government begins making the decisions that will be needed to effectively and finally seal the nation’s fate. For gold and silver, most are looking at this Brexit situation as something that can only work to fuel safe-haven demand. Whether that proves to be true or not, however, remains to be seen.

    Flash PMI Data Dealt

    The day was not without its helping of US economic data thanks to the release of the Flash PMI for January. According to HIS Markit, Flash PMI for the US in January was recorded at a reading of 55, up from December’s reading of just over 54. This was a solid start to the year for the manufacturing sector and reinforced the belief that the US economy is, in fact, improving.

    So long as this belief runs rampant, things will be a bit murky for precious metals. This is so because a stronger US economy means that there is a higher likelihood that interest rates will be risen at least 1 to 2 more times this year. If this does happen, spot values are likely to fall.

    Wrap-Up

    When the day was finished, precious metals backed off of multi-month highs but are still holding their ground decently. Between President Donald Trump and these recent revelations with regard to the Brexit situation, there is enough uncertainty that spot values are continuing to hang on strong. With that said, the US economic data stream is remaining strong and that is something that will always weigh on spot values. As we look further into the week, it will be interesting to see what the tone of economic data will be as that will assuredly impact spot values.

    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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