Gold Spot Price Open: $1,387
Gold Spot Price Close: $1,395
Change in Gold Spot Price:+$8
Silver Spot Price Open: $22.40
Silver Spot Price Close: $22.50
Change in Silver Spot Price:+$0.10
Gold and silver were both able to make modest gains on Wednesday as investors are seeing gold move further and further away from its April low of near $1,320. On the day gold picked up about 8 dollars while silver’s gains were around a single dime.
Ten year T note bond yields were high yesterday and bond yields did even better on Wednesday, giving more mass to the argument that Quantitative Easing may need to be wound down in the United States in the near future. These latest bond yields, coupled with the fact that the US has been seeing nothing but positive economic numbers makes it seem like the US economy may actually be fully recovered where it was a year ago and the few years before that. Despite this news being outright negative for precious metals, gold and silver have responded much more positively than ever expected.
The US Dollar traded down a bit on Wednesday which is likely one of the only contributing factors to gold and silver’s gains.
In the early morning and overnight hours on Wednesday it was reported that European stocks were down. This was a direct result of a less than stellar employment report out of Germany, the eurozone’s strongest economy. To add insult to injury, the OECD reported that the eurozone economy would contract in 2013 more drastically than it did in 2012. Some experts still hold that the European economy has the ability to recover, at least a little bit, in 2013, but as the year moves forward that hope is becoming more and more unrealistic.
You really have to hand it to those who have stuck it out with gold and silver because in the light of all this seemingly negative news the metals have responded in positive fashion. As we face the last two days of the week investors will be watching and waiting to see if gold will be able to eclipse the $1,400 mark that it came so close to at the end of Wednesday.
