Posted on November 24, 2014
Gold Spot Price Open: $1,202
Gold Spot Price Close: $1,198
Change in Gold Spot Price: -$4
Silver Spot Price Open: $16.46
Silver Spot Price Close: $16.52
Change in Silver Spot Price: +$0.06
Precious metals began this short trading week by conceding some value, but really didn’t do all that much moving today. When all was said and done, gold lost about four dollars while silver was able to add roughly six pennies. Platinum and palladium finished the day down, with platinum the bigger loser of the two after declining by more than $20.
Before US markets even opened today, a stronger US Dollar was putting pressure on gold and silver. The Dollar, which is now hovering around a 4-year high, has benefitted from a number of rival currencies taking dives in recent days. Just last week, an announcement out of China claiming that interest rates are to be slashed effective immediately ended up taking quite a good bit of value away from the Japanese Yuan. In addition to this, the Euro has been on a downward trend for much of the past few months and is continuing to fare pretty dismally.
By day’s end, however, the USD Index, which measures the greenback against a basket of rival currencies, was in the red slightly. Still, the Dollar fared well against a number of individual currencies throughout much of the day today.
This week is a holiday week in the United States and will more than likely bring about quiet proceedings for much of the three or four days trading is taking place. With Thursday playing host to the Thanksgiving Day holiday and Friday the “Black Friday” corporate holiday of sorts, it is likely that economic data, at least from the US, will be on the lighter side of things.
Stock markets in the US and Europe are continuing to do well today in the wake of last week’s somewhat surprising commentary and policy decisions from Europe and China. Due to the Chinese Central Bank’s decision to implement lower interest rates in conjunction with ECB president Mario Draghi’s comments regarding the possibility of quantitative easing measures, global stock indexes having been doing particularly well in recent days.
Today, all major US stock indexes are in the green and are growing stronger by the hour. The upbeat nature of stock indexes is yet another reason why gold and silver are feeling pressure at the start of this trading week.
For much of the past month or more, the value of crude oil has been on the decline, leading to happy customers at the pump, but not so happy big oil and gas companies. As of now, the spot value of crude oil is hovering just above a recently reached 3 year low and is not looking like it is going to be advancing too far anytime soon. In addition to lower crude oil prices leading to cheaper prices for fuel at the pump, the downward trend of oil lately has acted as a weight on all commodities, including precious metals.
This Thursday, while Americans are enjoying their Thanksgiving holiday, the Middle East oil cartel known as OPEC will convene for an emergency meeting of sorts. This week’s meeting is supposedly being arranged in order to allow OPEC nations to decide on what should be done in order to stabilize and ultimately increase the price of crude oil per barrel.
As it stands, an overriding belief is that OPEC will either institute newer, lower daily quotas for oil production, or become stricter with regard to their policing of current daily oil output. As it stands, the daily oil production quotas that are in place are typically ignored by OPEC countries who are looking to boost their own bottom line. Though it is still unclear what the outcome of Thursday’s OPEC meeting will be, it is preliminarily looking like low prices at the pump are soon to be on their way out.
Like was stated previously, this week is a shortened one for US investors due to the celebration of Thanksgiving on Thursday. Still, there is plenty for investors to mull over, including the policy shifts enacted by China last week and the upcoming OPEC meeting. All in all, however, I expect that this week will play out in quiet, uneventful fashion.