Posted on April 13, 2017
Gold Spot Price Open: $1,276
Gold Spot Price Close: $1,290
Change in Gold Spot Price: +$14
Silver Spot Price Open: $18.37
Silver Spot Price Close: $18.52
Change in Silver Spot Price: +$0.15
Both gold and silver moved forward again on Thursday, this time thanks to some remarks made by US President Trump. When all was said and done, gold added about 14 dollars while silver appreciated to the tune of roughly 15 cents. Yet again, Platinum and palladium finished the day mixed and ended not too far from even.
For much of the morning, precious metals were moving sideways. Then, comments from the President of the United States with regard to the USD ended up giving the metals market a sizeable boost. In a statement, President Trump commented that he believes the US Dollar to be too strong at the present moment in time. In the immediate wake of Trump’s statements, the Dollar began losing even more value than it already has this week. Trump went on to say that he thinks that interest rates should remain low for the foreseeable future. In other words, the President clearly disagrees with the direction Fed policy is heading. With regard to the Dollar, Trump said that, as it grows stronger it will inevitably hurt the US economy by making exports more pricy.
While the things Trump said were not necessarily false, it does go against a long-standing tradition. That tradition has been that the President typically does not comment on the policies of the Federal Reserve, which is, technically, an independent organization. Naturally, the Dollar taking a hit helped gold, but it was also the fact that Trump was once again breaking tradition through his actions and words.
Though situations in Asia and the Middle East have not really changed during the first half of this week, investors are growing increasingly uneasy about the potential for even more armed conflict across the world. A few fringe news outlets reported overnight that North Korean leader Kim Jong Un ordered the evacuation of 600,000 residents of the capital city of Pyongyang. Though this has not been independently confirmed, it is adding to the uneasiness that is running rampant presently.
If true, the evacuation of Pyongyang would be interpreted as North Korea preparing itself for largescale war. Being that the country recently promised retaliation for US-South Korean joint naval exercises taking place off the Korean Peninsula, it is easy to understand why people are nervous when it comes to North Korea.
Syrian concerns are still lingering as well. As the US and Russia meet this week to decide about what to do, collectively, about the country, the rest of the world waits with bated breath. It is not looking like the US will become more seriously involved in the situation, however it is too soon to tell for sure. We will continue following this as the days and weeks play out.
All things considered, Thursday was yet another quiet day across the global marketplace. We did see a good bit of movement after Trump made his aforementioned statements, but other than that there was nothing in the way of fresh, fundamental inputs. As we head into the Easter weekend, precious metals are sitting in a favorable spot. It is going to take a significant reduction in the current level of safe-haven demand for precious metals to lose their seemingly solid ground. Though we anticipate Friday will be perhaps the slowest day of the week, there is enough going on in the geopolitical sphere for some headlines to be made.