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    JM Bullion Gold and Silver Market Update (2/20/14)

    Gold Spot Price Open: $1,320

    Gold Spot Price Close: $1,325

    Change in Gold Spot Price: +$5

    Silver Spot Price Open: $21.88

    Silver Spot Price Close: $21.92

    Change in Silver Spot Price: +$0.04

    After trading down for a majority of the day, gold and silver were able to rebound and make marginal gains by day’s end. When all was said and done, gold gained about 5 dollars while silver’s gains were closer to a nickel.

    In the overnight hours, February’s preliminary manufacturing PMI for China was made public. After January saw a manufacturing PMI reading under 50, many investors were hoping that this month’s preliminary reading would yield a more upbeat outlook on China’s manufacturing sector. Instead, today’s PMI reading was barely over 48, suggesting that the contraction in the manufacturing sector of China’s economy may be worsening. This news worked against the spot values of gold and silver and was to blame for early day losses.

    Another factor working against precious metals today was an upbeat weekly jobless claims report. For the first time in a few weeks, the United States saw its weekly claims for unemployment benefits decline by a few thousand. This news boosted the USD and, as you might have expected, put more downward pressure on gold and silver.

    The most recent statements from the Fed have made it clear that tapering will likely press forward at the FOMC’s next meeting. While this is by no means a certainty yet, investors may begin to grow wary of gold and silver as an alternative investment. Nonetheless, the ongoing violence in the Ukraine may be enough to keep safe-haven demand for precious metals afloat, even if Quantitative Easing does end up being reduced by another $10 billion. As of earlier today, violence between protesters and riot police was continuing to rage as the situation more readily deteriorates. Leaders from around the world are calling for more decisive action to be taken by Ukraine’s leaders, but so far those calls have fallen upon deaf ears.

    As we head into the final day of the week, it will be interesting to see if gold and silver can build upon today’s late gains or if they will fall once more.

    Disclaimer: 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.

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