Posted on May 22, 2014
Gold Spot Price Open: $1,288
Gold Spot Price Close: $1,294
Change in Gold Spot Price: +$6
Silver Spot Price Open: $19.39
Silver Spot Price Close: $19.56
Change in Silver Spot Price: +$0.17
Gold and silver finished the day posting gains, but were far off from daily highs by the time markets closed on Thursday. When all was said and done, gold gained about 6 dollars while silver was able to pick up a little more than fifteen cents. At one point in the early morning spot gold was able to eclipse the $1,300 threshold, but that last only a short while as spot values came falling back down once more.
The main piece of news on Thursday came before US markets opened in the form of China’s preliminary manufacturing PMI for the month of May. Unless you have been living under a rock for the first 5+ months of 2014, you are more than likely aware of the downtrodden nature of recent Chinese data. Today, however, things changed as China’s preliminary PMI for May came in just shy of 50. While any reading below 50 suggests that the sector of the economy in question is experiencing contraction, the 49.7 reading investors were greeted with today far bested the 48.1 reading April dealt the marketplace.
The Chinese data did its part in boosting the spot values of precious metals during the morning, but a surging US Dollar did well to cut most gains in half by the time markets closed today. The spot value of gold has remained within a small range for the past few weeks now as few factors have been strong enough to push the metal too far in either direction. Hopefully, the realization that the Fed is not at all eager to raise interest rates will sink in soon enough and perhaps be a driving force pushing spot values upward. With that in mind, however, should the US Dollar continue to gain exorbitant amounts of value there is little chance for gold and silver to make any sort of extended run above key resistance levels.