Gold Spot Price Open: $1,254
Gold Spot Price Close: $1,261
Change in Gold Spot Price: +$7
Silver Spot Price Open: $19.13
Silver Spot Price Close: $19.28
Change in Silver Spot Price: +$0.15
Today saw short-covering and chart consolidation prompt gold to finish the day session above $1,260/ounce for the first time in more than 14 days. When all was said and done, gold was able to gain a little more than 7 dollars while silver picked up roughly 15 cents.
Gold and silver managed to build on upon yesterday's limited success today thanks to a slightly weaker US equity market in addition to inflationary concerns stemming from both China and the European Union. In China, it was reported that the consumer price index rose by roughly 2.5% year on year in May. This rise was bigger than the 1.8% CPI growth seen in April and may be a sign indicating that the Chinese central bank has the ability to implement some economic stimulus and not make inflation too much of a concern. There has been a lot of talk with regard to possible economic stimulus in China recently, but it is more speculation than anything as the Chinese central bank has made no indication that it will ease up monetary policy anytime soon.
In other news, Italian 10-year government bond yields were reported as falling below the yields of similar US bonds. The decline of bond yields doesn't come as too much of a surprise seeing as the ECB is pumping euros into the EU economy while simultaneously discouraging saving via their negative deposit rate. Though this too is nothing more than speculation, a number of market analysts fear that the ECB, through their decision last week, may have caused future inflation problems to become inevitable sometime down the road. These worries, should they intensify over the forthcoming weeks and months, can possibly end up serving as a impetus for investors to attain and hold on to safe, hard assets like precious metals.
As you can plainly see, the lack of any noteworthy economic data making its way to the market so far this week is causing investors to go about their normal speculating. Tomorrow will prove to be similar to today and will see investors continue to pay attention to the price action of both the US Dollar and US equities.
