Gold Spot Price Open: $1,396
Gold Spot Price Close: $1,386
Change in Gold Spot Price:-$10
Silver Spot Price Open: $22.76
Silver Spot Price Close: $22.70
Change in Silver Spot Price:-$0.06
Gold and silver continued their decline on Thursday, though losses were not nearly as bad as they could have been. Gold was down about ten dollars by the end of the day while silver lost only about 6 cents. Both metals started off the day in quite a hole, but were able to recover a bit towards closing time.
Gold and silver seem to be on the back of every investor’s mind as stock markets continue to surge around the world. So long as the risk associated with stock investments is as low as it is perceived to be now, gold and silver, as well as other safe-haven investments, will be set on the back burner. Low inflation rates across much of the major currencies in the world is yet another factor pushing heavily downward upon precious metals. Gold and silver thrive in times of high inflation and even more so in the event of hyperinflation, but as of late inflation has been a non-factor and many countries are even talking about instituting some deflationary tactics which would hurt gold and silver even more. On top of it all, Asian demand is incredibly low, something that is unusual for this time of year. As the price of gold and silver falls, however, it is unlikely that demand will remain as low as it is currently.
We are slowly but surely hearing more and more news regarding the end of Quantitative Easing in the US, but as of now no action is taken or has been planned on being taken. Many believe that easy monetary policies being implemented all over the world are not going to have good implications for economies in the long-run despite Central Banks thinking the opposite. Despite whether easy money around the world will help economies, it is without a doubt going to be helpful to gold and silver sometime down the road.
As we head into the last day of the week it will be interesting to see if gold can keep itself from declining over $100 in value on the week. Silver’s weekly losses have already eclipsed one dollar and will likely stay that way barring some big economic news tomorrow.