Gold Spot Price Open: $1,314
Gold Spot Price Close: $1,315
Change in Gold Spot Price: +$1
Silver Spot Price Open: $21.90
Silver Spot Price Close: $21.71
Change in Silver Spot Price: -$0.19
Gold and silver maintained a level heading on Monday on a mostly quiet day. When all was said and done, gold gained only about a dollar while silver lost almost 20 cents.
Last week's late losses posted by gold and silver along with a weaker US Dollar prompted some bargain-hunting buying today. European stock markets posted massive gains on Monday as it is a growing belief that the European Central Bank will loosen its monetary policy at their meeting, scheduled for Thursday. With inflation at its lowest point in years and economic recovery in Europe lagging, the ECB may be prompted to lower rates in the region. Apart from Germany, there have been few European economies to rave about over the past half year, exhibited perfectly in Spain's rampant unemployment and Greece's laundry list of issues, to highlight a few.
In other news, economic data out of China was upbeat as non-manufacturing PMI for October rose to a 12+ month high of 56.3. Precious metals can expect to continue to benefit from the strengthening Chinese economy. China will be hosting the Chinese Communist party meeting this week, a meeting where the government unveils their future plans and pending or upcoming policies/policy changes. Because of the overheating housing market and rising short-term interest rates, investors will be keeping an eye on this meeting for any possible precious metals market-relevant outcomes.
The last piece of precious metals-related news circulated today was of a continuance in the slack demand for gold from India. As Indians celebrate the 5-day Diwali holiday, it has always been a market expectation that demand for gold out of Indian would be significantly higher than most other parts of the year. This year however, recently raised tariffs on imported gold have put a huge dent in demand, so much so that gold's spot value will likely not receive any significant boost from this Indian holiday.
