Posted on February 24, 2015
Gold Spot Price Open: $1,201
Gold Spot Price Close: $1,203
Change in Gold Spot Price: +$2
Silver Spot Price Open: $16.33
Silver Spot Price Close: $16.40
Change in Silver Spot Price: +$0.07
Precious metals slumped to multi-month lows during the day, but were able to recover a bit by the time markets closed. When all was said and done, gold gained about two dollars while silver managed to add closer to ten cents. Platinum and palladium finished the day mixed, but in the end did not really move much at all.
During the first of her two days’ worth of testimony to Congress, Janet Yellen maintained that the US economy is continuing to improve and that interest rate hikes will be coming at some point down the road. With that said, however, she stated that when exactly rate hikes will take place will be determined on a “meeting-to-meeting” basis. While some points made by Yellen were deemed more hawkish, her testimony was not without its dovish elements, which is why the days’ worth of testimony had little impact on spot values.
Yellen will continue her speaking tomorrow in front of a US House panel. As was the case today, most are expecting that Yellen will remain none too surprising with regard to the content of her testimony. Nonetheless, investors from the world over will be paying attention to anything and everything Yellen has to say.
According to a number of reports released earlier in the day, Greece and EU finance officials are agreeing on the steps needed to be taken by Greece in order to reduce the nation’s debt. Through debt reduction efforts and more economic reforms, Greece is hoping to be on the receiving end of even more EU-funded financial aid. Still, investors from around the world are actively paying less and less attention to what is happening in Greece.
Of course, within only a few months, I anticipate that Greece’s plethora of problems will be right back on the front-burner.
In other news, this time regarding EU inflation, reports released earlier this morning showed that consumer prices fell in February at a record rate. This move has a number of EU central banks on edge, including the Royal Bank of England which has already stated it has emergency stimulation plans lying in wait.
On a mostly quiet day, precious metals did a good bit of moving. While gold did dip to 7-week lows during the mid-day period, the yellow metal was able to bounce back a bit by the time things were all said and done. As we head into the middle part of the week, I expect that some more month-end economic data will trickle in from around the world. Investors will assuredly be paying attention to what Janet Yellen has to say in the second part of her two-day testimony to Congress.