Posted on February 09, 2015
Gold Spot Price Open: $1,237
Gold Spot Price Close: $1,242
Change in Gold Spot Price: +$5
Silver Spot Price Open: $16.79
Silver Spot Price Close: $17.11
Change in Silver Spot Price: +$0.32
Precious metals opened the day posting small gains and remained more or less in those positions throughout the majority of the trading session. When all was said and done, gold gained about 5 dollars while silver’s gains just barely exceeded 30 cents. Platinum and palladium, on the other hand, lost about 5 dollars apiece.
Straight from the offing, precious metals were given a boost thanks to some fresh reports regarding Greek’s financial situation. In reports published prior to US markets opening, it was made clear that new Greek Prime Minister Tsipras will not accept an extension to the previously agreed upon EU bailout package. Instead, he has requested a bridge loan as a means of getting his country’s finances in better shape. While to some this may seem like a sensible request, Greece really isn’t in the position to dictate how other countries, namely Germany, help them with their mounting debts.
What this news story really does is unnerve investors who are now under the impression that Greece’s time as a member of the EU is coming to an end. In fact, there is a growing contingent who sees Greece leaving the European Union before March. There is no concrete evidence to back this up, but the rumors alone are causing investors to once again seek safe-haven in precious metals. That is a major part of the reason behind why gold and silver spot values rose on a day when the market was actually quite quiet.
Over the weekend, a group of leaders from Western nations sat down to discuss the possibilities for the future of Ukraine. In case you are unaware, the large European nation is still playing host to a civil war of sorts, and fighting has just recently intensified.
Western nations are not only pondering what they can do to stop the fighting outright, they are trying to devise ways of convincing Russia to cease their supposed supplying of arms, vehicles, and intelligence to pro-Russian separatists scattered throughout Eastern Ukraine. This weekend’s talks did not really have much of any impact on the marketplace, but with things in Ukraine seeming to hear up, it is important that investors be paying close attention to all developments stemming from the increasing unstable nation.
In other news to begin the week, China’s imports and exports were reported as missing the target(s) by a long shot during January. Officially, year-on-year exports in China were down by almost 5% during January while imports were down by a massive 21.4%. This news is coming just on the back of some upbeat economic data from China published last week and is an undeniable bearish factor for gold and silver.
As the week moves forward, things are expected to remain just as slow as they were today, but with all that is going on in Greece and Europe in general, I am sure there will be plenty for investors to focus on and discuss.