Posted on November 19, 2014
Gold Spot Price Open: $1,196
Gold Spot Price Close: $1,184
Change in Gold Spot Price: -$12
Silver Spot Price Open: $16.22
Silver Spot Price Close: $16.18
Change in Silver Spot Price: -$0.04
Metals trended upward for much of the day on Wednesday as stocks and the Dollar fell ahead of the release of the FOMC’s minutes from their October 28th and 29th meeting. By day’s end, however, the story was a bit different. When all was said and done, gold had lost about 12 dollars while silver’s losses were just under five cents. Platinum and palladium ended the day both down by more than ten dollars apiece.
Shortly after US markets opened on Wednesday, US stock indexes began trending downward across the board as a result of weaker housing data. Officially, data released today showed that housing starts fell quite dramatically during the month of October despite it being believed that the housing markets was on the up and up as of late.
Officially, the report showed that the breaking of ground for new homes fell by almost three percent from September to October. While this data was perceived by the market as being exceptionally poor, the news wasn’t all that bad today as it was reported that permits for future construction projects reached a level not seen since 2008 while residential-construction permits reached points in October that have not been realized since 2006.
Still, the poor aspects of today’s housing data were weighted more heavily than the upbeat aspects and, as such, US equities suffered ahead of the release of the FOMC’s minutes.
The big data point of the day and week came this afternoon in the form of the Fed’s most recent minutes. With so much continuous talk regarding the future of interest rates in the United States, any news pertaining to the Federal Reserve is hawked over by investors from all over the world; and this was no different.
Unfortunately, the minutes, after they were made public, were almost immediately deemed a non-factor by the marketplace. No new talking points emerged as a result of the minutes and markets did not change course much in their wake. Despite the fact that this batch of Fed data was more of a miss than anything else, you can bet your bottom dollar that, come the next piece of Federal Reserve data, the marketplace will grind to a halt and pay attention once again.
For much of the first half of the day, the marketplace was quiet due to investors anxiously awaiting the Fed’s minutes. By early afternoon, however, there was a sharp sell-off of gold that seemed to oddly coincide with a Swiss measure that was just shot down after a recent vote.
According to reports, a Swiss citizen-led initiative being called “Save Our Gold” was reported as having less than 40% of Swiss voters in favor of it. The initiative was established in an effort to convince the Swiss government to increase gold holdings to be 20% of total government assets. Though there is no saying for sure that the sell-off of gold was caused by news of this initiative being shot down, but the two events did seem to occur curiously close proximity to one another.
Looking ahead to the last few days of the week, there isn’t much in the way of economic data for investors to pay attention to. Though most people will be interested to say what the weekly jobless claims report from the United States has to say, I anticipate that things will otherwise be quite quiet. For gold and silver, the next two days will more than likely determine whether this week’s trading session was a loss or not.