Posted on November 17, 2015
Gold Spot Price Open: $1,087
Gold Spot Price Close: $1,072
Change in Gold Spot Price: -$15
Silver Spot Price Open: $14.33
Silver Spot Price Close: $14.27
Change in Silver Spot Price: -$0.06
Precious metals both continued sliding on Tuesday, but gold was, by far, the bigger loser of the two-falling to unprecedented lows. When all was said and done, gold lost roughly 15 dollars on the day while silver’s losses were more modest, at about 6 cents. Platinum and palladium both lost about 10 dollars on the day.
While today did not offer much in the way of major, markets-moving data, gold, silver, and most other precious metals continued along their downward trajectories. Gold stood out amongst the precious metals losers as the yellow metal’s spot value touched on levels not seen in more than 5 years. With investors convinced that interest rates will be raised, coupled with the fact that the Dollar is doing so well, gold really doesn’t stand a chance. Last week’s attacks in Paris prompted some safe-haven demand for metals, but now stocks are rebounding and that safe-haven attitude has evaporated just as quickly as it set in.
An interesting fact is that precious metals, as a grouping, have declined 14 of the past 15 trading sessions. Clearly, the interest of investors is elsewhere and until the Fed makes a move one way or another come December’s meeting, I do not see precious metals making any sort of lasting rebound.
Supporting the idea that rates will be raised in the near future was a report released today indicating that consumer prices rose during the month of October for the first time in 2 months. If inflation levels improve, the case for raised rates will only get that much stronger.
As was mentioned previously, today offered the latest reading on the Consumer Price Index. Officially, the Index moved up by .2% during October. Putting a bit of a damper on that news was the fact that industrial production fell by two-tenths of one percent last month. This now makes three straight months where we have witnessed a decline in industrial production. Rounding out the news today was the United States manufacturing output report for last month, which improved by .4%. All in all, the data dealt on Tuesday was as mixed as could be and did not have all that much of an impact on the price action of stocks nor precious metals.
Stocks in the US bounced back thanks to some very upbeat news from some major retailers. Wal-Mart saw its shares move upward by more than 4% thanks to earnings per share of $1.03 during this year’s third quarter. That level of earnings, per share, handily beat expectations. Home Depot shares were not too far behind those of Wal-Mart’s thanks to third-quarter earnings and revenue figures that bested the expectations of some well-trusted economists. This was a nice day on Wall Street after the attacks in Paris last Friday more or less forced things to a standstill. Moving forward into the week, it will be interesting to see if stocks in the US can maintain this upward trajectory.
When it comes down to it, Tuesday offered basically the same story for gold and silver that we have been seeing consistently for the past few weeks. Market conditions are almost entirely stacked against safe-haven metals, and there is not much reason to believe that this will change anytime soon. Of course, we will continue to keep a close eye on any and all US economic data, but something tells me it is going to take a bit more than a few downbeat pieces of economic data for the investing world to change their opinion on what they think the future holds for interest rates in the US.