Posted on November 06, 2014
Gold Spot Price Open: $1,149
Gold Spot Price Close: $1,146
Change in Gold Spot Price: -$3
Silver Spot Price Open: $15.60
Silver Spot Price Close: $15.51
Change in Silver Spot Price: -$0.09
Precious metals didn’t do much moving today, but what movement happened was mostly in the negative direction. When all was said and done, gold lost about three dollars while silver depreciated by nearly ten cents. Platinum and palladium both finished down by about ten dollars.
To be fair, there are quite a few economic happenings worth talking about during the latter half of this week, but few are more important than today’s European Central Bank meeting. In stark contrast to what was expected by a number of investors, the ECB decided that it would hold off on making any monetary policy shifts. As a result of this, the market’s attention quickly shifted to ECB president Mario Draghi’s post-meeting statement. Making matters even more disappointing was the fact that Draghi’s statements gave no clues with regard to future policy shifts and was ultimately deemed to be quite dovish.
All in all, today’s ECB meeting and accompanying statement pushed the Euro down even further and allowed the USD Index to surge to a fresh four-year high. Today’s ECB meeting was not necessarily all that bad for precious metals, but seeing as the Dollar was given a boost, it wasn’t at all beneficial for metals either.
Now that the ECB meeting has been more or less digested by the marketplace, the attention of investors is shifting, this time to tomorrow’s release of October’s employment data for the United States. As it stands, expert analysts are anticipating that the Labor Department report will show an increase of at least 230,000 jobs in October. After September’s data showed job increases right around 250,000, it should come as no surprise that October’s data is expected to be very. very upbeat.
As if things couldn’t get any worse for gold and silver, an upbeat employment report tomorrow will, in all likelihood, add to the pressure metals are being faced with.
Crude oil, which has been a real drag on all commodities of late, is still hovering near a 3-year low and is not expected to get all that much stronger anytime soon. In fact, there exists a number of experts who think crude oil is going to get even weaker before it begins to actually recover.
Due to the lackluster nature of today’s European Central Bank meeting, the day, on the whole, was fairly uneventful. Investors are gearing up for tomorrow’s jobs data, but the current market atmosphere is generally calm. From the perspective of precious metals, investors are looking for anything to help revert losses, but so far that search has proven more futile than anything else. Quite simply, the market is very bearish for metals at present and is not looking like it will get better anytime soon, especially not if the US economy continues to improve and the Dollar continues to appreciate.