Posted on May 14, 2014
Gold Spot Price Open: $1,297
Gold Spot Price Close: $1,307
Change in Gold Spot Price: +$10
Silver Spot Price Open: $19.63
Silver Spot Price Close: $19.85
Change in Silver Spot Price: +$0.22
Gold and silver spot values ended the day session trading higher thanks to a weaker US Dollar and growing concerns with regard to the crisis in Ukraine. When all was said and done, gold gained about ten dollars while silver was up by more than twenty cents.
Market analysts are all over the place today with their reasoning behind metals’ recent price actions, and none of them seem to agree. According to Tommy Capalbo, a precious metals broker with Newedge, some of the price bounce-back is a result of traders who established short positions when gold and silver experienced their recent pullback. Because the spot values of gold and silver have been holding steady within a relatively small range, moving slightly in either direction, investors have simply been trying to capture gains from minor price actions rather than holding on to metals for the long-term.
Another market expert cited a stronger euro currency as the reason behind why gold and silver spot values are doing a bit better today. The euro rising in value is putting more pressure on the US Dollar which is, in turn, helping precious metals, even if only slightly. Today’s release of April’s producer price index for the United States saw an increase of .6%. This .6% price index increase is the largest we have seen in a while and ended up only adding to the pressure being levied against the USD.
With tensions on the rise in Ukraine there is a growing sense of optimism that precious metals may finally be able to break through key resistance levels and sustain those gains. As it stands, gold is slightly above $1,300/ounce while silver is trying its hardest to once more approach the $20/ounce threshold.