Gold Spot Price Open: $1,379
Gold Spot Price Close: $1,380
Change in Gold Spot Price:+$1
Silver Spot Price Open: $23.70
Silver Spot Price Close: $23.40
Change in Silver Spot Price:-$0.30
Gold remained more or less stagnant for the second day in a row as silver managed a drop of about 30 cents. When US markets closed, gold was sitting at about $1,380, up just on dollar, while silver dropped 30 cents to end up at $23.40.
Because of precious metals’ very recent history and steady declines over the past few weeks, it comes as no surprise that the US dollar has gained some strength. As the value of the dollar rises, the Chinese yen is dropping and this, some market experts believe, is the perfect recipe for gold’s sudden decline. In addition to these two currency movements, other experts are shying away from gold and silver because they fear similar bank sell-offs of gold, like happened the other day in Cyprus, will continue at different central banks around the world. If many banks decided to take an action similar to that of Cyprus, it could spell bad news for precious metals investors.
Because of a weakened gold value, a larger demand for gold has jumped up in certain parts of Asia, namely India. The increased Asian demand has so far not been enough to pick up any large losses gold and silver have suffered, but so long as spot prices remain low, demand will be high, and hopefully gold will be able to gain some ground.
US stock markets were also in a bit of a rut come Wednesday, and when the day was over they were not in any better of a position than when they had started. There are so many market concerns in a multitude of different market segments that seemingly no one is confident about where they should allocate their funds.
