Posted on June 10, 2013
Gold Spot Price Open: $1,381
Gold Spot Price Close: $1,386
Change in Gold Spot Price:+$5
Silver Spot Price Open: $21.65
Silver Spot Price Close: $21.95
Change in Silver Spot Price:+$0.30
Gold and silver both started off the week with modest gains, though both metals started the day looking as though they would be posting losses. Despite early losses, gold was still able to manage a gain of about 5 dollars while silver picked up just about 30 cents.
The president of the St. Louis Federal Reserve, James Bullard, spoke today and what he had to say was a bit shocking for those of you who have been keeping up with the uncertain future of monetary policy in the US. Bullard said that presently low inflation levels could mean that Quantitative Easing may be kept in tact for the foreseeable future. This prompted many to refrain from selling their gold and actually lessened some of the downward pressure that has been put on precious metals recently.
One of the biggest stories of the day actually took place over the weekend when China released a large slate of economic data, most of which came in weaker than anticipated. In May the Producer Price Index from China fell by almost 3% while imports declined by almost half of a percentage point. What seemed like good news was the fact that industrial output in May was up by over 9%, though the fact that this number was lower than what was recorded in April put things into perspective. Electricity output in May grew by about 4%, which seems good, but when compared to an April reading of around 6%, it seems more like the Chinese economy is slowing down.
The US Dollar performed decently on Monday after having a terrible run of form for a majority of last week. Also recovering from a horrid last week was the Japanese Nikkei Index which recorded about 5% growth on Monday. This comes as great news for the stock index which, over the last three weeks, lost about 20% of its overall value. We will keep our eyes and ears peeled for the rest of the week to see if the USD and Nikkei Indexes can grow upon the gains they both made on Monday.