Gold Spot Price Open: $1,288
Gold Spot Price Close: $1,283
Change in Gold Spot Price: -$5
Silver Spot Price Open: $21.49
Silver Spot Price Close: $21.42
Change in Silver Spot Price: -$0.07
Gold and silver posted modest losses amid a quieter trading session on Monday. When the closing bell rang in the US gold was down 5 dollars while silver lost about 7 cents.
Monday marked the celebration of both Veteran’s Day in the United States and the Armistice Day holiday in Europe. These two simultaneous holidays translated into a quieter day of trading for a majority of investors. Despite a lack of fresh economic data, investors were in full speculation mode as last Friday’s employment report for October was still reverberating around the world marketplace. Recent economic data out of the United States has been stronger than expected, causing a growing number of people to believe that the United States Federal Reserve may taper its Quantitative Easing monetary policy before the end of the year. The next time we stand to hear any concrete information with regard to US monetary policy will be at the Federal Open Market Committee’s meeting in December.
With that being said, however, there is another strong contingent of people who feel as though the ECB’s slashing of their key lending rate has given the US Fed more of a time cushion to decide what to do with QE. As the US Dollar continues to grow in strength compared to other world currencies, gold and silver will have little to no room to make any gains.
In other news, China continues to be a source of strong economic data, something that is bullish for precious metals. Since China is a huge consumer of precious metals, any positive report stemming from their economy tends to be received favorably by gold and silver investors. However, with the US Dollar making consistent gains last week and continuing to do the same this week, even the best Chinese economic data will have a difficult time pushing gold and silver in a positive direction.