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    JM Bullion Gold and Silver Market Update (3/21/16)

    Gold Spot Price Open: $1,257

    Gold Spot Price Close: $1,245

    Change in Gold Spot Price: -$12

    Silver Spot Price Open: $15.90

    Silver Spot Price Close: $15.84

    Change in Silver Spot Price: -$0.06

    Gold and silver suffered at the hands of profit-taking and chart consolidation on Monday, but that was to be expected after both metals’ performances towards the end of last week. When all was said and done on Monday, gold lost over ten dollars while silver ended the day in almost the exact same spot it was in when markets opened. Platinum and palladium were both up on the day, but neither metal gained much more than 5 dollars by the time the day was through.

    Chart Consolidation, Profit-Taking Hurt Metals

    This was mostly expected, but chart consolidation and profit-taking ended up taking their toll on precious metals to begin the week. Even though most stock markets were mixed through the first half of the day, it was generally agreed that investor risk-appetite is remaining higher now than it had been in any of the last few weeks. So long as investors are keen on stock investments, the safe-haven thunder that had been propelling gold and silver may back off for a bit. All in all, however, the near-term outlook is still fairly bright for metals as the global economy remains as uncertain as it has ever been.

    This week will be slightly shortened due to the Easter holiday. Because of this, most global markets will not be open on Friday. Perhaps helping gold and silver a bit this week is the fact that crude oil is backing down from the 3-month high it hit on Friday.

    OPEC Meeting Draws Little Attention

    Major oil-producing countries met over the weekend to talk about the possibility of cutting production, but that meeting yielded very little. In fact, the only real piece of information is that another similar meeting is set to take place about a month from now. Regardless of what the outcome of the OPEC meeting is, the fact of the matter is that Iran is likely going to throw a monkey wrench in any plans relating to the cutting of crude oil production.

    Iran is not cooperating with OPEC, and after years of not being able to sell oil to Western markets it is no surprise that they are taking every opportunity to sell oil to whoever they can. This will be interesting to watch as these Middle Eastern countries compete for as much business as they can possibly get.

    USD Bounces Back, Pushes Metals Downward

    The US Dollar is up by a few tenths of a percentage point against the euro on Monday. The Dollar’s strength today and over the past few days is due to the fact that the Federal Reserve recently commented on the number of times they expect to raise interest rates through the remainder of the year. Rates are likely going to remain at present levels for some time, and that is helping the Dollar gain some value.

    For gold and silver, the current level of risk-appetite across the global marketplace is such that precious metals are having a difficult time making gains. With that being said, the state of the global economy can best be described as a mess, and that is something that almost always bodes well for gold and silver.

    Wrap-Up

    Monday was not the most eventful day of the week, but it did see both gold and silver lose value. Though this is not the best news, the thought process held by many is that continuously deteriorating economic conditions in many parts of the world will lead to a situation where both gold and silver continue to make gains over the near and long terms.

    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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