Gold Spot Price Open: $1,335
Gold Spot Price Close: $1,348
Change in Gold Spot Price: +$13
Silver Spot Price Open: $22.68
Silver Spot Price Close: $22.83
Change in Silver Spot Price: +$0.15
Gold and silver posted modest gains on Thursday, as both metals continued along their recent upward trends. At the end of the day, gold gained about 13 dollars while silver picked up 15 cents.
The US Dollar is continuing along its decline and is still hovering around a 10.5 month low, which has helped the euro reach new heights. The Dollar has been one of the main sources of aid for the spot values of gold and silver lately and will likely remain a bullish factor for metals for the near-term future. Another factor helping the spot values of gold and silver is the upcoming holiday season in Asia. Because gold and silver are both commonly given as gifts for holidays in Asia, anytime a holiday rolls around there is always a likelihood that demand for gold and silver will increase.
In other news out of Asia, the HSBC China manufacturing PMI for October came in better than expected. October’s PMI posted a reading of 50.9 when compared to September’s reading of 50.2. Though the PMI reading may mean nothing to you, it must be noted that any reading above 50 is positive, and thus, this .7 growth is an even more positive indication for the Chinese economy.
While this news is positive for China and precious metals, it is being counteracted by rising housing prices and short-term interest rates. These two factors are forcing many to believe that the Chinese government will soon be compelled to tighten monetary policies. Such a tightening of Chinese monetary policies will likely suppress demand for commodities from the country and will likely hurt precious metals spot values.
Manufacturing and services PMI out of Europe came in weaker than expected in October and caused the euro to slightly decline in value. The euro’s decline is only minor because it is being helped by the declining US Dollar. As of now, this week is panning out to be a positive one for precious metals; a welcomed relief from the previous two to three weeks.
