Gold Spot Price Open: $1,165
Gold Spot Price Close: $1,170
Change in Gold Spot Price: +$5
Silver Spot Price Open: $15.95
Silver Spot Price Close: $15.98
Change in Silver Spot Price: +$0.03
Precious metals moved slightly higher for a second consecutive day this week upon some economic data from China and some mixed results on Wall Street. When all was said and done today, gold managed to gain roughly 5 dollars while silver ticked upward to the tune of about three cents. Platinum and palladium, however, were both down by roughly $10 apiece.
Stocks Mixed as Banks Report Struggles
Stocks in the US finished the day posting mixed, but mostly negative results, thanks to some poor economic data from US corporations–namely banks. As major US banks such as Wells Fargo and Bank of America gear up to release third-quarter earnings reports after markets’ close today, their shares slid downward. Clearly, the investing world is not confident that this past quarter was a positive one and are therefore making moves before the earnings are even released. All things considered, it is beginning to become quite clear that your average American investor has become quite cognizant of the growing global economic slowdown and is reacting as such. Having said this, it should really come as no surprise that gold and silver are doing quite well in recent days.
More third-quarter corporate earnings reports are set to be released over the course of the next three days or so, and at this point no one is expecting much from them. Holding precious metals back a bit today were slumping crude oil prices thanks to very real growths regarding the rate at which the Chinese economy is growing. As a leading commodity, the price action of crude oil almost always directly influences gold and silver in one way or another.
More Chinese Economic Data Dealt
It has been no secret that recent Chinese economic data has been less than stellar. Though today’s data was not the best we have ever seen, it was a drastic improvement from months’ prior. On Tuesday, it was reported that China’s exports over the course of September handily outpaced those from August. Though things are still being read as negatives, any improvement on the part of the Chinese economy is going to be welcomed by the market at this point.
Officially, year on year exports during September fell by little more than one percent versus expectations that exports would show an annual decrease of nearly 1.5%. Considering August’s year on year decline was up over 6% and July’s closer to 9%, the 1.1% decline is being seen as a small victory. Unfortunately, imports to the country fell by more than 15% on an annualized basis in September, which, in a way, more or less erases and positives that can be taken from the export figures.
According to Chinese officials, the surge forward of exports during September was likely due to the release of new cell phones and other consumer electronic products that are produced in the large Asian nation. At the core of it all, however, Chinese officials noted that there is a need for drastic improvement on the part of the economy, and fast.
Wrap-Up
As we look forward to the last few days of the week, I am certain that much of the talk of the marketplace will revolve around any and all data from China. This is a big data week for the nation, and considering the growing economic slowdown we are witnessing, investors are picking apart any and all data that the country provides. More corporate earnings reports will also be published this week, and that is sure to stir up some market activity.