Posted on April 19, 2017
Gold Spot Price Open: $1,295
Gold Spot Price Close: $1,283
Change in Gold Spot Price: -$12
Silver Spot Price Open: $18.45
Silver Spot Price Close: $18.13
Change in Silver Spot Price: -$0.32
As geopolitical worries subsided on Wednesday, precious metals took a fairly sizeable hit. When all was said and done, gold lost in upwards of 12 dollars while silver was down by more than 30 cents. Platinum and palladium both finished the day extremely close to where they began it.
For the better part of the last week or two, we have seen the market pay close attention to the geopolitical sphere for what is really the first time this year. In the wake of missile strikes on Syria and fiery rhetoric aimed at North Korea, investors were quite concerned that otherwise small situations might escalate into something far more serious.
Though investors are still very much paying attention to what is happening in Asia, worries surrounding a potential US-North Korean war have diminished significantly. As tensions decline, the precious metals market is beginning to suffer. Not only are investors cashing in on recent gains, the US Dollar has been lifted from a 3-week low. What’s more, stock markets are beginning to gain some much-needed traction.
Today’s losses are obviously not going to do spot values any favors, but they may not be so serious. Investors may not be putting as much weight into geopolitical issues at the present moment in time, however these issues are not going to disappear overnight. As such, we will continue to keep an eye on these things as things carry on.
As if somewhat diminishing tensions did not give precious metals enough trouble, today also saw the greenback and stocks recover to some extent. Major US stock indexes may not have had the most impressive finish to the day, but were moving upwards through most of the late morning and afternoon. This alone is a sign that investors may not be as risk-averse as they were when the week began, and when last week ended. The real test to this theory will come over the next 2 days, being that the week is almost through.
The USD Index, which has been on an almost steady decline since the beginning of the month, also ticked up on Wednesday. Thanks to the surprise announcement made by UK PM Theresa May yesterday, in which she stated that a general election will be held in June, has pounded the GBP down. This alone has given the greenback a lot of room to venture forward. As we head further into the week, I would be not at all surprised to see the USD continue making gains. The Dollar has been beaten down at every turn since the end of March, and it is about time we see a rally of some sort.
To the surprise of many, this week has so far proven to be more lackluster than anything else. The overriding theme has been a focus on geopolitical issues, however investors are growing increasingly less concerned with regard to war breaking out in Asia, or further war breaking out in the Middle East. As we head into the final days of the week, you can expect that the weekly jobless claims report will garner at least some attention from the wider investing world. Other than that, there really isn’t much in the way of fresh economic data to speak of.