Gold Spot Price Open: $1,243

Gold Spot Price Close: $1,227

Change in Gold Spot Price: -$16

Silver Spot Price Open: $15.26

Silver Spot Price Close: $14.69

Change in Silver Spot Price: -$0.57

Precious metals concluded the week by losing considerable value thanks to upbeat economic data encouraging investors that further rate hikes may not be as far away as once believed. When all was said and done, gold lost close to twenty dollars while silver declined by more than 50 cents. Platinum and palladium also finished off the week by losing value.

Upbeat US Economic Data Alters Interest Rate Views

For the last few weeks, a major theme across the global marketplace was that investors both in the US and elsewhere around the world were expecting to see interest rate hikes delayed a few months. The reason for this was a combination of poor global economic conditions as well as US economic data that seems to have been lacking over the past few weeks.

Today, and for the last few days of the week as a whole, the marketplace was dealt some surprisingly upbeat news with regard to the US economy. On Thursday, it was reported that durable goods orders rose unexpectedly in January. This news was such a surprise due to the fact that most market experts were expecting to see such orders backtrack last month.

Today, the market saw that while US GDP slowed during the 4th quarter, it did not lose as much momentum as originally anticipated. In addition to this, it was reported that January consumer spending ticked upward by a respectable margin. Though 4th quarter GDP data was originally dealt a few weeks ago, today saw the poor figure revised marginally upward. Currency strategist Sireen Hirajli commented on today’s data by saying, “The fact that GDP was revised higher is a positive for the dollar this morning, giving confidence to markets that the Fed may resume its tightening policy this year.”

Now we are seeing a slight change of opinion insofar as it relates to the possible hiking of interest rates later this year. As recently as a week or two ago, the general consensus was that we would not see interest rate hikes until April at the earliest. Now, with the all-important jobs growth figures from February due out towards the end of next week, investors may be given enough to be convinced that interest rate hikes lay just around the corner, rather than a few months away. Still, if you ask many people, the state of the global economy is such that interest rate hikes are not likely to be risen for a month or two.

Dollar Rises on Upbeat Data

The upbeat US economic data to close out the week did not just increase the likelihood that we will see interest rate hikes in the near future, it also gave the Dollar a marked boost to head into the weekend. After moving between gains and losses throughout most of the week, the Dollar solidified this as a positive 5-day trading session by gaining across the board to close out the week.

Now, with the end of February fall on next Monday, the marketplace will be interested in the upcoming slew of economic data that is expected out over the next two weeks. As is often the case, the combination of the weekly jobless claims report and February’s non-farms payrolls figures will take the cake as the most highly anticipated pieces of economic data.

Wrap-Up

For gold and silver, this was one of, if not, the worst week of the month. Though gains were reported on occasion, most closes saw both metals lose value. Even worse is the fact that silver crossed below the $15/threshold heading into the weekend.