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    JM Bullion Gold and Silver Market Update (12/31/15)

    Posted on December 31, 2015


    Gold Spot Price Open: $1,062

    Gold Spot Price Close: $1,062

    Change in Gold Spot Price: NO CHANGE

    Silver Spot Price Open: $13.92

    Silver Spot Price Close: $13.92

    Change in Silver Spot Price: NO CHANGE

    Precious metals remained flat for essentially the whole day on what is arguably the quietest trading day of the year. When all was said and done, gold remained about even while silver did exactly the same thing, having not gained nor lost a single penny. Platinum and palladium made decent gains on the day, both picking up about 20 dollars.

    USD Index Gains Close to 10% in 2015

    For gold and silver investors, this past year was not very forgiving. For the USD Index, things couldn’t have gone better as the greenback is going to finish the year 9% higher than it was 365 days ago. Even with losses being recorded in December, the greenback has put forth a solid performance and is looking to continue it once we advance into the New Year.

    From this point back to May of 2014, the USD has made gains of 25% against a number of different currencies while gaining a clean 22% against the euro during that same timeframe. If you take into consideration the timeframe starting with January 2015 to December 2015, the USD has gained a bit more than 10% against the euro. Despite all this good news, it must be mentioned that the Dollar retreated to the tune of 1.5% during December; its first decline in 1/3 of a year.

    As for what the future holds for the Dollar (and the US economy), most experts are expecting big things. The Federal Reserve will play a major role in the Dollar’s performance, as it always does, and if interest rates are raised any further the Dollar stands to benefit immensely. According to Richard Franulovich, of New York-based Westpac, “The Fed could come back with a second hike in March, which is not fully priced in, and the dollar should draw fresh support from that.”

    For precious metals, the fact that such big things are expected from the greenback means that spot values are going to likely continue having a difficult time making any significant, lasting gains.

    Slow Day, As Usual

    Being that it is now New Year’s Eve, it should come as no surprise that trading activity both in the US and around the world was lighter than usual, even for a holiday week. Gold and silver did not lose much of any value on the day, but they are still in a fairly precarious situation that threatens to take them even lower.

    As we look ahead to next week and the first full week of 2016 trading, it will be quite interesting to see what happens to gold and silver amid the plethora of economic data that will be dealt. Year-end economic data carries a lot of weight for investors because it offers a more wholistic view of how a given economy, or sector of the economy, performed over the past twelve months. What’s more, it is with this year-end data that so many investors make their 2016 investment decisions. Though the near-term looks bleak for both gold and silver, it is important to remember that things can change in a matter of moments, and metals are not necessarily doomed to repeat 2015 during 2016.

    All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.