Posted on March 21, 2017
Gold Spot Price Open: $1,237
Gold Spot Price Close: $1,248
Change in Gold Spot Price: +$11
Silver Spot Price Open: $17.51
Silver Spot Price Close: $17.51
Change in Silver Spot Price: NO CHANGE
Precious metals were able to retain some of their strength on Tuesday as a lack of fresh news made for a quiet day of trading. When all was said and done, gold added about 11 dollars while silver ended the day not having gained nor lost any value. Platinum finished the day in about the same position it was in when the day began, while palladium added a few dollars more than 5.
Precious metals continued to benefit from a weaker Dollar, but an overall lack of fresh inputs made for a quieter day of trading. Thanks to the lack of fresh inputs, the marketplace was full of more timid investors. With people shying away from riskier stock investments, equities and the Dollar were both down. This is helping continue to propel spot values forward.
There was some developments out of Europe, as European stock markets are pushing a bit higher this week. Reports from France show that far-right presidential candidate Marine Le Pen is slowly but surely losing ground in the polls. To provide insight, Le Pen, if elected, has promised that she will do everything in her power to remove France from the EU. As did a similar situation with the UK, the prospect of France leaving the EU is something that spikes safe-haven demand for precious metals. The fact that Le Pen is losing ground has given some support to risk-appetite across the region, which is, in turn, helping prop up stocks.
Some other noteworthy economic data from Europe included inflation data from the UK. According to the data, consumer prices, year over year, rose by more than 2% during February. This was far better than expected and was the best consumer price report dealt in more than 3 years. This report is just one of many that suggests inflationary pressures are on the rise in most major economies. If this trend continues, it will more than likely come to the aid of gold and silver over the long-term.
Despite strength being seen across most European equity markets, the same is not being seen in the US. Since hitting record highs at the very beginning of March, US stock indexes have moved backwards at a fairly steady rate over the past 2+ weeks. Both the basic materials and financial sectors of US equity markets are performing worst of all.
According to RealMoney’s Rev Deporre, “Since hitting new highs on March 1 the indices have done little. here was a brief flurry of buying following the Fed interest rate decision last Wednesday, but it has been very sloppy action within a tight trading range. The bullish spin on this dull action is that it is healthy consolidation that is a set up for another thrust higher.” Even though the near-term outlook on equities may be optimistic, we are currently seeing most markets reposition themselves lower. All of this is working wonders for precious metals, which have recovered from about 3 consecutive weeks’ worth of losses.
It goes without saying that Tuesday was a very lackluster day across the global marketplace. Despite this, precious metals are still receiving a lot of support mostly thanks to the Fed’s recent decision to hike rates. While there is no saying how long this support will last, a lack of fresh inputs may very well continue to come to the benefit of precious metals’ spot values.