Gold Spot Price Open: $1,318
Gold Spot Price Close: $1,312
Change in Gold Spot Price: -$6
Silver Spot Price Open: $21.82
Silver Spot Price Close: $21.74
Change in Silver Spot Price: -$0.08
Gold and silver remained mostly stagnant on Tuesday as bearish data continued to put downward pressure on both gold and silver. At the day’s end, gold was down roughly 6 dollars while silver lost almost ten cents.
The ISM non-manufacturing Index was released early in the day, and it came in far stronger than what the market had expected. This prompted the US Dollar to make gains almost as soon as the day began. Ever since the latest FOMC meeting, any positive US economic news will fortify the growing belief that QE will be done away with before the end of 2013. Though there is no real evidence to confirm this belief, the recent statement by the Fed boasting the economy’s strength coupled with stronger than expected economic data has made a tapering of QE seem likely to happen sooner rather than later.
China’s services PMI rose slightly in October, adding to a long line of positive economic data coming from the world’s second-largest economy. China’s Communist Party meeting is scheduled for this week and it will be intriguing to see if any policy changes come as a result. With China’s overheating housing market and rapidly rising short-term interest rates peppering the news as of late, China and its monetary policies will be paid attention to closely by the world marketplace.
Finally, the European Central Bank meeting is taking up most of the headlines this week as investors are showing signs that they believe European monetary policy will be altered. Inflation has been at multi-year lows and because of slowing economic recovery, a lowering of interest rates seems like the most obvious direction for the EU to head in. This belief has yielded a decline in the euro currency and a sharp rise in the value of the US Dollar. As is the case any time the USD gains a lot of value, heavy downward pressure was put on precious metals for the whole day.
