Posted on May 28, 2014
Gold Spot Price Open: $1,266
Gold Spot Price Close: $1,259
Change in Gold Spot Price: -$7
Silver Spot Price Open: $19.12
Silver Spot Price Close: $19.09
Change in Silver Spot Price: -$0.03
Gold and silver continued to trend downward on Tuesday, mostly thanks to a more intense risk-on attitude exhibited by world investors. When all was said and done, gold lost about 7 dollars while silver ended up closer to even, only losing a few cents.
Risk-appetite is only gaining momentum as stock indexes from around the world continue to edge higher. As investors more readily focus on equity markets, interest, and thus demand, for precious metals will continue to trend downward. Today offered investors very little in the way of fresh economic data which more or less doomed spot gold and silver to continue along their downward trajectory.
The crisis in Ukraine is continuing to stay out of the headlines and is slowly but surely evolving into more of a regional dispute as opposed to a conflict the investing world should take note of. Despite the recent lull in Ukraine, we will continue to keep a close eye on the situation as pro-Russian rebels have yet to lay down their arms and continue to torment large parts of the country.
Finally, there has recently been some concern amongst market analysts with regard to just how quickly, and at what rate, the US economy is growing. Many feel as though the rate at which the economy is growing is drastically slower than what was forecast for this year and that the Fed should rethink their current course of tapering Quantitative Easing. Of course, the Fed has not even alluded that they plan on slowing down tapering, but this is still something for investors to think about. Currently, the tapering of Quantitative Easing is a somewhat bearish factor for metals. Should tapering be slowed down, or perhaps even done away with entirely, gold and silver may be given a significant boost. Alas, talk of slowing down the tapering process is nothing more than a product of the rumor mill at present and has no grounding in fact. We will just have to wait until the first few weeks of June, when the Fed meets again, in order to hear their latest opinions with regard to the strength of the US economy.