Posted on April 22, 2013
Gold Spot Price Open: $1,409
Gold Spot Price Close: $1,428
Change in Gold Spot Price:+$19
Silver Spot Price Open: $23.38
Silver Spot Price Close: $23.48
Change in Silver Spot Price:+$0.10
Both gold and silver saw positive days as demand for metals was able to bring in positive results. At the end of US trading on Monday, gold was up about 19 dollars while silver was up just about a dime.
Like many speculated in the immediate aftermath of gold and silver’s collapse, increased demand for gold and silver would eventually help to propel the value of the metals forward. Whenever there is a decrease in the spot value of metals, this decreased price spurs investors, namely bargain-hunting investors, to head to the market place to pick up gold and silver while the price is down. Whenever the drop in value is an extreme one, like we have seen over the last two weeks or so, bargain hunters start making purchases right away. Though it took a little while, it seems as though an increased demand for cheaper precious metals is the reason behind why gold and silver have seen healthy gains both today, and last Friday.
The Group of 20 countries had a meeting in Washington DC, during which they more or less approved the Japanese Central Bank’s new monetary easing policy. This policy is being employed by a number of different nations around the world and its main goal is to drive the value of a given currency down in order to make a given country’s exports more enticing to foreign buyers. This policy has been helping certain economies, but market experts are worried that if enough countries partake in this kind of monetary easing it will thow the world economy into an upheaval.
Gold and silver may have improved even more drastically if it weren’t for the US dollar having a good day. As we all know, whenever the USD has a good day, gold and silver tends to react in opposite fashion. Hopefully these early-week gains can be compounded as the week progresses.