Gold Spot Price Open: $1,074
Gold Spot Price Close: $1,076
Change in Gold Spot Price: +$2
Silver Spot Price Open: $14.20
Silver Spot Price Close: $14.00
Change in Silver Spot Price: -$0.20
Precious metals finished the week posting mixed results, but no metals really moved too far on this final day of trading. When all was said and done on Friday, gold managed to pick up close to 2 dollars while silver lost close to twenty cents. Platinum and palladium finished the day and week mixed as well, with platinum moving down by more than ten dollars while palladium managed to gain a few dollars.
Metals End Mixed on Slow Final Day of the Week
Friday did not offer much of a contrast from the rest of this trading week, and especially did not offer much in the way of fresh fundamental economic data from the US or elsewhere around the world. The spot value of gold managed to bounce back after losses which were incurred on Wednesday and Thursday, but gains made on Friday were nothing significant. Gold’s gains today are largely being attributed to the USD Index backing down after recent gains.
The overall mood of the global marketplace is a somber one, as investors prepare for what they see as an inevitable interest rate hike announcement expected to be made next Wednesday. As for what the expected interest rate hike announcement might mean for gold and silver, analysts are widely expecting that the spot value of gold may fall down to an even $1,000/oz before the end of the week.
Securities strategist from ETF, Martin Arnold, commented on what the future holds for gold by saying, “What we are likely to see in the next three months is the discussion moving from the rate hike to the pace of rate tightening cycle. A broad range between the high $1,080s to $1,030 is where we are going to see gold in the first quarter, starting towards the lower end of the range in a knee-jerk reaction to the Fed’s move and then grinding higher throughout Q1.” So, to put it simply, the near to medium-term future is not looking all that promising for precious metals. Though anything can happen to alter that perspective, there is not much out there that suggests precious metals will make much in the way of sustained gains anytime soon.
Stocks Fall on Weaker Oil, Limits Gold’s Gains
For yet another day this week, the upside felt by precious metals was limited due to the fact that crude oil is continuing to lose value on an almost daily basis. Today, many global energy stocks were on the downturn thanks to suffering oil prices. Really, the story as far as crude oil is concerned has not changed over the course of the past few weeks. Just as it is with gold and silver, a fundamental change across the global marketplace is needed before any sustainable gains are realized. As it stands, the value of crude oil is hovering around a 7-year low as we head into the weekend.
So long as a global supply-glut exists, which it has for some time now, there is a very small likelihood that crude oil will do much of any recovering. It will be interesting to see, however, what kind of reaction crude oil has to the expected interest rate hike announcement.
Wrap-Up
Despite making small gains on the day, the week as a whole was still pretty rough on precious metals. It seems as though spot values are kind of running in place and not making much of any progress. Though we are hoping for some change as far as this is concerned, such a change does not seem like it will be happening anytime soon.
