shopper approved
    2948.32
    5.86
    33.1
    0.07
    994.15
    1.92
    1013.94
    4.44
    banner-update21

    JM Bullion Gold and Silver Market Update (10/4/16)

    Gold Spot Price Open: $1,313

    Gold Spot Price Close: $1,270

    Change in Gold Spot Price: -$43

    Silver Spot Price Open: $18.84

    Silver Spot Price Close: $17.76

    Change in Silver Spot Price: -$1.08

    Precious metals had a horrible day on Tuesday and gold, specifically, had its worst day in more than 3 years. When all was said and done, gold lost more than 40 dollars while silver moved downward by well over a dollar. Platinum and palladium did not do quite as bad as gold and silver, however both metals lost between $15 and $20 apiece.

    Metals Down, Could Fall Even Further

    Straight from the time markets opened on Tuesday, the spot price of both gold and silver began falling. As of now, there are a few different factors being blamed, and a stronger US Dollar is amongst them. Against most rival currencies, the USD hit multi-year highs and appears to be continuing to move upward. A major part of the reason the USD did so well today was due to some commentary from a non-voting member of the Federal Reserve.

    According to Jeff Lacker, president of Richmond’s Federal Reserve, there is currently an extremely strong case to be made for interest rates being raised. He went on to say that rates can and should be about 1.5% higher than they are now. These comments are much more specific than Fed members have been lately, but it is surprising to see such a strong action result from comments stemming from a person who does not have direct influence over whether rates are touched or not.

    In addition to Lacker’s comments, some were under the impression that perhaps the upcoming non-farm payrolls report would be far better than expected. While most are anticipating healthy job growth in September, there was nothing to latch onto that suggests this month’s report is going to blow anyone away.

    If we are looking at the numbers, this is the worst day for gold since June of 2013. For silver, we have not seen a day this poor since June of 2012. With how far metals have fallen, experts are warning that things might get worse before they get better. By the time markets open on Wednesday, it will be truly interesting to see the direction of metals and to see if spot values continue to suffer, or will pull back as some sort of bargain-hunting bounce.

    All Eyes on Non-Farms Data

    Even though it is extremely easy to say that precious metals’ poor day today was due to comments from a member of the Federal Reserve, that does not really make sense to most. Even though we have, on plenty of occasions, seen Fed talk push metals in certain directions, you will be hard-pressed to find a time when the push was as strong as what we saw today.

    With many investors not entirely too sure how to play things, the attention now turns to Friday’s non-farms payrolls data. Well, it really begins with the ADP private-sector employment report tomorrow, but will wrap up on Friday with the release from the Department of Labor. Should we see extremely strong job growth having taken place last week, then there is a chance that gold and silver will continue to push lower. There are a lot of unknowns, but what we do know is that this is shaping up to be one interesting week.

    Wrap-Up

    Perhaps more surprising than anything else was the fact that there really wasn’t much economic data on offer today. Apart from commentary from the Fed and ensuing free-fall on the part of precious metals, the marketplace was fairly quiet. That will change over the course of the coming days, however it is still uncertain what that means for gold and silver.

    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.

    Top Stories

    History of Gold Prices
    Do Goldbacks Count as Legal Tender?
    The Althea Gibson Quarter
    Read More

    Subscribe to JM Bullion’s newsletter to receive timely market updates, sales and giveaways.