Posted on November 13, 2014
Gold Spot Price Open: $1,164
Gold Spot Price Close: $1,163
Change in Gold Spot Price: -$1
Silver Spot Price Open: $15.77
Silver Spot Price Close: $15.72
Change in Silver Spot Price: -$0.05
Gold and silver traded sideways for a majority of the day and finished Thursday down ever so slightly. When all was said and done, gold lost about a dollar while silver declined by about 5 cents. Platinum and palladium finished mixed, but neither did all that much moving throughout the day.
There is no denying that this week has been slow from an economic standpoint, but that changed a bit today upon the release of the most recent weekly jobless claims report. After last week’s employment report for October came back far weaker than expected, the eyes of the investing world were always going to be fixated on the weekly jobless claims report.
When the data was released, the figures showed that weekly jobless claims had risen by far more than expected. This news gave gold and silver a slight boost, but clearly it wasn’t enough to translate into any gains. George Gero, of RBC Capital Markets, commented on today’s jobless claims, by saying, “Today’s jobless numbers were disappointing and gave a boost to gold. At these prices, we will see more physical buyers come in.”
At this point it is difficult to say whether physical buying will be enough to bring spot values up any higher, but if the last few weeks are any indication, such may not prove to be the case.
The US Dollar Index, which measures the greenback against a basket of rival currencies, moved around quite a bit today, but finished in the red. Over the course of the past few months, however, currency traders the world over have been continuously trying to get their hands on the Dollar, and for good reason too. For most of the latter half of 2014, the US economy has outperformed most major economies around the world and is still looking like it will only grow from here.
Making the Dollar appear even more attractive is the fact that while the US Federal Reserve ponders raising interest rates, thus increasing the value of the Dollar, other major central banks from around the world (BoJ, ECB) are actively taking steps to devalue their own currencies. Because of all this, it really should come as no surprise that the Dollar is doing so well.
With all of this said, however, the fact that everyone is jumping on the Dollar bandwagon may cause more days like the one we saw today. In a statement to CNBC, Lee Hardman, currency analyst for the Bank of Tokyo Mitsubishi said, “U.S. dollar speculative positioning is increasingly becoming a very crowded trade, which leaves it more vulnerable to pullbacks in the near-term on the back of disappointing economic data from the U.S. which acts to dampen Fed rate hike expectations.” So while the Dollar is definitely still on the up and up, the path upward is bound to be marred, to some extent, by pullbacks the likes of which we saw today.
Looking ahead to the final day of this week, there really isn’t much economic data for investors to latch on to and talk about. Of course, plenty of attention will be paid to currency and equity markets, but apart from that there is not much else making any massive impacts on the global marketplace. Equities traded mostly downward today, but are still in prime position and trading near record highs.