Posted on November 24, 2015
Gold Spot Price Open: $1,072
Gold Spot Price Close: $1,078
Change in Gold Spot Price: +$6
Silver Spot Price Open: $14.17
Silver Spot Price Close: $14.32
Change in Silver Spot Price: +$0.15
Gold and silver have regained some value on Tuesday thanks to some unexpected violence out of the Middle East. Thanks to safe-haven demand being on the rise today, gold managed to gain around 5 dollars while silver improved to the tune of about 15 cents. Platinum and palladium, on the other hand, both did not do much moving and finished the day in more or less the same positions they were in when they began it.
The big news story of the day came in the form of a report claiming that a Turkish F-16 fighter jet shot down a Russian jet that had ventured across the Syrian border and into Turkish airspace. Russian president Vladimir Putin was quick to comment on the unfortunate situation and called Turkey’s downing of the Russian SU-24 a “stab in the back.” This situation is particularly interesting seeing as Russia is currently bombing and engaging in military action against the same rebels that Turkey is allegedly backing.
Russia has claimed that these actions will not go unpunished, but it will be interesting to see what, if anything, is done. Investors almost immediately flocked to gold and silver as safe-haven assets as fears that this could become more than a regional issue grow quickly. We will be keeping a close eye on every bit of commentary stemming from this situation as it is sure to move markets through the coming days.
As it stands, the United States is avoiding becoming part of this conflict, but it is unclear how long this may remain the case.
Prices of single-family homes rose in September at a rate that handily beat the expectations of market experts. The S&P/Case Shiller composite index, which analyzes 20 metropolitan areas across the US, picked up 5.5% during September on an annualized basis. This was better than August’s 5.1% increase and generally a good number for investors to see.
In a statement, David M. Blitzer, chairman of the index committee at S&P, said, “The general economy appeared to slow slightly earlier in the fall, but is now showing renewed strength. With unemployment at 5 per cent and hints of higher inflation in the CPI, most analysts expect the Federal Reserve to raise its fed funds target range to 25 to 50 basis points, the first increase since 2006.”
So even though gold and silver were able to manage some healthy gains today, the ever-lingering belief that rates will be raised before the conclusion of the year is keeping any gains subdued.
Rounding out US economic data for the day was a report from the US Commerce Department which said that 3rd-quarter GDP was r evised upward to up 2.1%. Initial data showed a rise of just 1.5%, which not only fell far short of expectations, but paled in comparison to the 2nd-quarter reading of up 3.9%. Being that initial expectations were for third-quarter growth in the range of 2%-2.2%, today’s revision was welcomed with open arms by anyone and everyone who wants to see rates hiked before the end of the year.
I expect that today was the last eventful day for the week as many Americans gear up to celebrate the Thanksgiving holiday on Thursday. With people taking time away from work to spend more time with their families, trading over the next few days will be light. Of course, we will still be keeping a close eye on anything that stems from the situation regarding Turkey and Russia.