Gold Spot Price Open: $1,324
Gold Spot Price Close: $1,317
Change in Gold Spot Price: -$7
Silver Spot Price Open: $21.95
Silver Spot Price Close: $21.92
Change in Silver Spot Price: -$0.03
Gold and silver continued along their decline on Friday, though losses were not nearly as significant as they were a day ago. When all was said and done, gold lost about 7 dollars while silver lost a few pennies.
Gold and silver had no room to make any gains on this first day of November because of a better-performing US Dollar. After weeks of almost constant decline, the US Dollar finally turned things around, thanks to the Fed’s post-meeting statement. The USD is not only receiving help from the Fed though, as the Euro currency has begun to decline in the past few days as well. The reason for the Euro’s decline is being attributed to European Central Bank leaders flirting with the idea of loosening monetary policy.
The talks of loosening monetary policy in Europe stemmed from yesterday’s reports regarding Europe’s inflation rate, which is at a 4-year low of .7%. With recently lackluster economic reports coming out of Europe, loosening monetary policy may end up being the only action the ECB can pursue. We will continue to monitor the Euro and the EU over the coming weeks in an effort to see if the ECB pursues changes to monetary policy.
News out of China indicated that its October manufacturing PMI rose by three-tenths of a point. This confirms the belief that the Chinese economy is on the up and up, though a recently heating housing market and rising short-term interest rates have been a cause for concern lately. The fact that the Chinese economy is performing well has been a bullish factor for metals, though all eyes will continue to watch the housing market and interest rates. If short-term interest rates continue to rise, China may tighten its monetary policy, which would not be good for precious metals.
