Posted on March 29, 2017
Gold Spot Price Open: $1,255
Gold Spot Price Close: $1,256
Change in Gold Spot Price: +$1
Silver Spot Price Open: $18.24
Silver Spot Price Close: $18.20
Change in Silver Spot Price: -$0.04
Gold and silver were moving mostly sideways throughout most of the day on Wednesday thanks to a lack of fresh inputs. When all was said and done, gold ended up losing about a dollar while silver ended up losing almost 5 cents. Platinum and palladium both lost on the day, but not by much more than a few dollars apiece.
Though there was almost nothing in the way of fresh inputs on Wednesday, we did see the belief that gold and silver will perform well through at least the near-term bolstered a bit. For one, there is still a focus on President Trump. Instead of dwelling on his (and the GOP’s) failed attempt at repealing and replacing Obamacare, investors are choosing to look forward as the overriding belief is that the focus will now turn to his economic policies. As is the case with most of Trump’s proposed policies, safe-haven demand is being fostered because people are flat-out unsure what the future holds. Though he has yet to really elaborate on fiscal policies, there is a feeling that President Trump might do exactly that in the near future.
Something else causing a stir on Wednesday was the fact that UK Prime Minister Theresa May officially filed the paperwork that would see the UK leave the EU once and for all. Though this is something that investors have more or less come to terms with, the fact that the paperwork was filed brought about a new round of safe-haven demand for metals. Finally, to round out the shortlist of talking points from Wednesday, we are seeing increased attention being paid to upcoming French presidential elections.
The reason France’s elections are so important is due to the fact that right-wing candidates have been vocal about their intent to follow the UK’s footsteps and get France out of the EU. Though these right-wing candidates do not have the best chances of winning the election, everyone from around the world remembers that the same was said about Donald Trump prior to his assuming the seat of President of the United States. We are still a little ways away from the elections, however that will not stop investors from speculating about what might happen if a right-wing establishment takes hold in France.
Right now, we are in the midst of the time of month where Federal Reserve bank presidents are making their speaking rounds. Though the words of some bankers are weighted more heavily than others, investors will be looking and listening for any and all clues with regard to what the future holds for interest rates in the United States.
For now, there is no general consensus with regard to when the next rate hikes will be initiated, but we are slowly but surely seeing investors and experts point to June as the time when rates will be hiked again. With all of the positive economic data we have been receiving, the June timeline seems appropriate, but we will still be listening to the Fed to find out any concrete details we can.
All things considered, Wednesday was yet another slow day. We did not see precious metals do much moving, but it is clear to see that momentum is still in the favor of metals. Tomorrow will bring about a small batch of weekly economic data so, if nothing else, there will be a bit more action then than there has been thus far this week. As for what to expect going forward, you can safely assume that many of the same talking points will be revisited day in and day out (Fed Talk, BRexist, French elections).