Posted on April 04, 2017
Gold Spot Price Open: $1,255
Gold Spot Price Close: $1,258
Change in Gold Spot Price: +$3
Silver Spot Price Open: $18.31
Silver Spot Price Close: $18.27
Change in Silver Spot Price: -$0.04
Precious metals attempted to move higher on Tuesday, however a generally quiet marketplace the world over prevented anything in the way of major moves from taking place. When all was said and done, gold added about 3 dollars while silver fell by only a few cents. Platinum and palladium both moved mostly sideways by day’s end.
There is going to be a lot for investors to mull over and discuss this week, it just so happens that most of those talking points will not make their way into the public sphere until Wednesday to Friday. For today, investors were seen sitting back and waiting for things to happen. Nervousness with regard to how President Trump’s meeting with Chinese leader Xi Jinping will go is helping lend some support to safe-haven demand for metals. In fact, if you look at the last 4 weeks, it is safe-haven demand and the general worrisome nature of the average investor that have been aiding precious metals.
Trump has thus far had a contentious relationship with China, and has not had many nice things to say about their dealings both militarily and economically. If, during their meeting this week, Trump adds to recently fiery rhetoric, gold and silver may receive an additional boost. The US and China have never had a perfect relationship, and the feeling, at least amongst some, is that Trump is doing just about everything he can to worsen that relationship.
Gold and silver spot values are also receiving safe-haven support from weaker data that was released Monday. Though Monday’s data points were by no means overly significant, the feeling is that perhaps they set the tone for the duration of the week’s data, which includes March’s reading on non-farms payrolls growth.
During the first week of trading for any given month, it goes without saying that some of the biggest, most influential pieces of data center on the employment sector. For the US in particular, employment data has gone a long way when it comes to influencing expectations regarding interest rate hikes. Being that this is the first week of April trading, it should come as no surprise that investors are gearing up.
Tomorrow is when the employment data stream kicks off in the form of the ADP private-sector jobs growth report. As we always say, the ADP report does not necessarily have any bearing on the all-important non-farms data (scheduled to be released on Friday), but it is still weighed fairly heavily by investors. There are mixed feelings with regard to how strong (or how weak) March’s employment reports will be, and it is very likely that the tone of the forthcoming data may very well influence how precious metals finish out the week.
Something else that will catch the attention of investors on Wednesday is the release of the minutes from the FOMC’s most recent meeting. As always, investors will be pouring over these minutes in order to hopefully find clues with regard to what the future holds for rate hikes. No one is expecting the minutes to yield any massive revelation with regard to future rate hikes, but investors are hoping to gauge the FOMC’s tone in order to get an idea as to when the next hike might occur. Right now, the slowly-forming general consensus is that the next rate hike will take place during June.
All in all, Tuesday was a slow day across the global marketplace that really saw investors gearing up for the data and talking points that lie ahead. Metals are still hanging tough thanks to persistent safe-haven demand, however the next few days are going to influence metals’ directions one way or another.