Posted on November 02, 2015
Gold Spot Price Open: $1,143
Gold Spot Price Close: $1,135
Change in Gold Spot Price: -$8
Silver Spot Price Open: $15.62
Silver Spot Price Close: $15.49
Change in Silver Spot Price: -$0.13
Precious metals extended last week’s slide on Monday as many of the same factors begin to weigh heavily on spot values. When all was said and done, gold lost about 8 dollars while silver’s losses edged just over ten cents. Platinum didn’t move much by day’s end, but palladium lost more than 25 dollars.
Gold and silver did not lose all that much value on Monday, but the underlying theme that was perpetuated to begin this week is what comes across as especially worrisome. That theme is the growing control on the part of market bears thanks to a perceived increased likelihood that interest rates will be raised by the end of the year. The exact timing of an interest rate hike is something that has long been debated by investors, but after last week’s FOMC meeting and accompanying statement the picture seems to be a bit clearer than it ever has been.
Up until a week or so ago, the value of gold and silver was seeing some benefit from the growing economic slowdown and its potential impact on the United States. Though those concerns are still very real, they have faded to the background for now. Unfortunately for precious metals, the near-term outlook has shifted dramatically and is not looking favorable.
Making matters even worse for gold and silver today was the fact that US equities performed particularly well. All in all, it is a bit impressive that gold and silver did not suffer even greater losses when you consider how many factors were stacked up against them.
Now that the month of October is through, you can expect that economic data from the US and elsewhere around the world will begin to roll in. Being that much of recent economic data from the US has been somewhat poor, investors and the Federal Reserve will be eyeing every piece of data coming from the United States. If interest rates really are going to be hiked sometime next month, then it goes without saying that economic and employment data needs to be upbeat in nature.
If the data from the United States continues to come back poorly, the case for interest rates being raised this year will become a bit more difficult for people to buy into. For now, however, we are seeing a marketplace that is growing more and more convinced that interest rates will be risen before the year is through.
All things considered, Monday offered up a fairly slow and uneventful start to this trading week. Gold and silver suffered losses that were more or less a continuation of what happened through the end of last week, and the near-term outlook for metals continues to grow increasingly bleak. With economic data likely going to fill up the next 4 days, it will be interesting to see if the current expectations of investors will be maintained or if they will change at all.