Gold Spot Price Open: $1,186
Gold Spot Price Close: $1,184
Change in Gold Spot Price: -$2
Silver Spot Price Open: $16.73
Silver Spot Price Close: $16.70
Change in Silver Spot Price: -$0.03
Precious metals did not do much moving on Tuesday, but what little movement there was was mostly downward in direction. When all was said and done, gold lost a few dollars while silver was down by a few pennies. Platinum and palladium made some surprising gains today that more or less counteracted yesterday’s losses.
Eurozone Unemployment Flirting With 3-Year Low
For much of the last 12 to 18 months, the Eurozone’s 19-country economy has been lagging. At this point, this much is no secret as we have been closely following Europe’s struggles as well as their central bank’s attempts at rectifying problems and subsequently spurring economic growth. More recently, however, we have seen a small but noticeable improvement on the part of the overall European economy. That continued today as the Eurozone’s unemployment rate is hovering right near a 3-year low. Today’s upbeat jobs figures from Europe encouraged investors that deflationary pressures, of which have gripped the EU, might finally be easing up.
On an annualized basis, consumer prices across the EU during March were reported as falling by .1%. This number was about what the market was expecting and follows February’s .3% decline fairly closely. Expect more economic data from the European Union as this week moves forward.
Friday’s Jobs Figures Especially Important
Like we have been saying for the past few days, this week is going to be particularly important. The reason for this is not only due to the fact that we are expected to be given a plethora of economic data, but because that data is likely to influence how the Fed judges the timing of interest rate hikes. As it stands, the market is looking to a speech being made by Janet Yellen on Thursday as well as Friday’s jobs figures from March to determine when exactly the Fed plans on raising interest rates.
According to Kitco’s Jim Wyckoff, “This speech she’s giving this Thursday is going to be extra important. If we get an extra strong, or an extra weak, jobs report Friday, that could tip the Fed’s hand.” Basically, what he is saying is that this week’s employment report from March will be the one that decides when interest rate hikes will take place. At present, the market is more or less split, with some thinking interest rate hikes are coming this summer while others do not think rate hikes will be instituted until sometime after the turn of the New Year. In addition to Friday’s employment report, a boatload of other pieces of economic data will be made public by this time next week, most of which will have some sort of impact on the precious metals market.
Metals Sitting In Limbo
Despite last week’s rally of sorts, it is still clear to see that the market is not particularly fond of precious metals at the current moment in time. With most investors focusing on equity and currency markets, it has been hard for gold and silver spot values to gain ground, and even more difficult for them to retain gains. Though it may seem like it, the market is not overly bearish on gold and silver. Instead, it seems as though investors have developed a lukewarm attitude towards metals such that they are neither directly opposed to acquiring gold (or silver), but are not exactly itching to get their hands on it either.
With a boatload of economic data expected in the coming days, I think we will gain a clearer idea of just how gold and silver will fare, at least through the near-term future.
Wrap-Up
As has been the case for the past few days, today played host to a quiet atmosphere that was mostly devoid of any groundbreaking price action. While some economic reports trickled in today, the bulk of them will be due out through the last three days of the trading week. Every economic report is important, but I have a strong feeling that those from the United States will take precedence in the eyes of the investing world.
