Posted on April 17, 2017
Gold Spot Price Open: $1,294
Gold Spot Price Close: $1,287
Change in Gold Spot Price: -$7
Silver Spot Price Open: $18.66
Silver Spot Price Close: $18.36
Change in Silver Spot Price: -$0.30
Precious metals opened up this week of trading having lost some value right away. When all was said and done, gold lost about 7 dollars while silver conceded in the neighborhood of 30 cents. Platinum and palladium both finished the day having lost about two dollars apiece.
We concluded last week with investors primarily concerning themselves with the geopolitical sphere. That much hasn’t really changed as there were some developments over the Easter weekend. On Saturday, North Korea reportedly attempted to (test)fire a missile. Unfortunately for the Koreans, that missile test did not go so well as the rocket exploded and crashed back to earth shortly after being launched. Even though the missile was not even able to be accurately tested, the action is not being ignored by the world. Chinese, South Korea, American, and many other leaders have all condemned the North’s actions and have warned about further provocations.
According to most people, the missile test was likely in response to US and South Korean military borders taking place off the coast and on the Korean Peninsula. As such, tensions around the region remain high as ever. The United States has put the ball in China’s court as this matter progresses. Being that China is North Korea’s most high-profile ally, it is up to them (in the eyes of the world) to diffuse what is becoming an increasingly tense situation. For gold and silver, tensions and concerns relating to the situation in Asia are boosting spot values. This should come as no surprise as global tensions, historically, tend to support safe-haven metals.
Monday was not the biggest day for economic data, but there was some data released by the Federal Reserve of New York. New York’s Empire State Manufacturing Index showed a massive drop in recent months. According to the data, the general business conditions index fell to a reading of just over 5 for the month of April. Considering that same index saw a reading of more than 16 in March, it is safe to say that this data point was a far cry from what investors and experts were anticipating to see.
According to the report, “Business activity expanded at a slower pace than in the prior two months. Although the general business conditions index remained above the levels seen through most of 2016.”
There wasn’t much reaction to this data, generally speaking. Gold prices remained heading slightly lower in the report’s wake, while the Dollar failed to receive much of a boost. The Dollar has been losing for the last few weeks now, and after Trump’s comments last week it is not looking like the greenback will see any marked recovery any time soon.
As you might have expected, this week got off to a slow start. To be fair, the marketplace was generally quieter on Monday as most of the world views today as a continuation of the Easter Holiday, and therefore were not in the office. As the week wears on, we will see the focus of investors turn to geopolitics once again. That has been a hot topic of discussion the past few weeks, and with tensions on the Korean Peninsula as high as they are, investors are not going to turn their attention away anytime soon. Apart from that, there are a few pieces of noteworthy economic data expected to be dealt.
Beyond this, gold and silver are looking to be in pretty good shape. The Dollar is reeling and not looking like it is going to gain any support anytime in the near future. So long as that remains true, gold and silver spot values will have little trouble moving forward; or at least holding their ground.