Gold Spot Price Open: $1,240
Gold Spot Price Close: $1,243
Change in Gold Spot Price: +$3
Silver Spot Price Open: $15.28
Silver Spot Price Close: $15.38
Change in Silver Spot Price: +$0.10
Both gold and silver finished the week on positive notes, though the week as a whole was nothing to write home about. When all was said and done on Friday, gold managed to add a few Dollars while silver picked up just about ten cents. Platinum and palladium also finished the last day of trading on the up and up, with both metals having made gains around the ten dollar range.
China’s First-Quarter Economic Data Surprises Many
It seems as though it has been quite some time since we have discussed the Chinese economy and everything that comes with it. Last time we checked in, growth was still slow and the central bank and government were actively trying to fix that. Perhaps their efforts were not totally in vain as today it was reported that China’s economy performed a bit better than expected through 2016’s first quarter. Of course, this does not mean that China is in any way out of the woods, it is encouraging to finally hear some good news come from an economy that has been devoid of it recently.
China’s Premier, Li Keqiang, spoke today about how while China’s performance through the first three months of the year was nice, it was nothing more than a very small step in the right direction for an economy that has been heading in the wrong direction for a long time now.
Quite simply, Li said, that “In the first quarter of this year, China’s economic indicators showed more improvement.” Rather than sit back and enjoy this improvement, Li was quick to add that “the basis of such improvement is not solid due to the impact of sluggish world economy and market volatility.” Like many other world leaders, Li is blaming outside forces for his domestic economy’s inability to perform at a high level.
China still has a lot of ground to make up. Especially if you consider the fact that their Q4 performance was the weakest the country has put forth since the middle of the global economic recession of 2008.
More Rate Hike Talk
It seems as though we cannot go a single day without discussing the possibility of further interest rate hikes in the United States and when they might occur. Today, it was Fed member William Dudley who vocalized his thoughts and opinions on the prospect of raised interest rates. Like many others, the president of the New York Federal Reserve expressed his concern that outside factors may continue to be a major factor in preventing the Fed from acting quickly to raise interest rates.
Though Dudley did not out and out voice his opposition to raising rates, he simply maintained that the Fed should be cautious and in no hurry to jack rates up just for the sake of raising them. Dudley, who is very close to Janet Yellen, seemed like he was echoing her recent sentiments and the sentiments of many others who are close to the situation. Though it is impossible to say for certain, most people are coming to terms with the fact that we may be waiting a few more months until rate hikes are discussed in any sort of serious manner.
Wrap-Up
As we look ahead to next week, it will be interesting to see if precious metals are able to build at all off of the gains that have been made towards the end of the week. There is a lot more Q1 economic data slated to be made public in the coming days, so that is something we are also going to be looking forward to over the course of the next 5-day trading session.
