Gold Spot Price Open: $1,395
Gold Spot Price Close: $1,381
Change in Gold Spot Price:-$14
Silver Spot Price Open: $22.70
Silver Spot Price Close: $22.35
Change in Silver Spot Price:-$0.35
After Monday was quiet for US traders due to the observance of the Memorial Day holiday, Tuesday opened up in disappointing fashion for precious metals. The day got off to a bad start and by the time all was said and done gold had lost about fourteen dollars while silver’s losses topped 30 cents. Gold did get the week off to a somber start, despite the yellow metal hitting over $1,400 at one point in the day.
Tuesday brought with it a slew of US economic reports including the Manufacturing Index, Housing Price Index, and Consumer Confidence Index. All the reports were positive, though none more so than the Consumer Confidence Index which topped out at 5-year highs. This report, coupled with the few others, helped both the US Dollar and US stocks surge forward yet again.
After Fed Chairman Bernanke’s speech to Congress last week, investors will be watching over US economic data more fervently than normal. The news on Tuesday was definitely favorable to those in the Fed and elsewhere that hope to wind down Quantitative Easing in the coming months.
While gold made some decently substantial losses on Tuesday, things could have been worse if it weren’t for much higher crude oil prices. This took some of the selling force away from precious metals.
As the week moves forward, investors will continue to watch how the US Dollar does as well as stock markets in the US and around the world. As you are probably all too aware of, higher stocks and dollar values mean for more selling of gold and thus lower spot values. We do expect this trend to continue throughout the week, though if other commodities like crude oil continue to do as bad as they have been, some of the downward pressure may be taken away from gold.
