Posted on June 13, 2013
Gold Spot Price Open: $1,391
Gold Spot Price Close: $1,385
Change in Gold Spot Price:-$6
Silver Spot Price Open: $21.92
Silver Spot Price Close: $21.83
Change in Silver Spot Price:-$0.09
Gold and silver opened the day on Thursday trading down quite a bit from their posted gains yesterday, and things only got worse as the day moved on. Luckily, both metals were able to bounce back a bit from their daily lows and will end up finishing down, but not by as much as they could have been. At the end of the day gold was down about 6 dollars while silver lost roughly 9 cents.
Some positive economic reports out of the US did well to help the stock market but did a good job of putting some downward pressure on gold and silver. Weekly jobless claims in the United States came in at a number that was lower than anticipated while retail sales exceed expectations. While other stock markets in the world, including the Japanese Nikkei Index, suffered decent losses, US stocks had an OK day.
Only about a month ago we saw the Japanese Nikkei Index post record highs, but for most people who have since invested in the Japanese stock market, that record posting seems like a lifetime ago. Over the course of the past few weeks the Nikkei Index has been suffering and losing value at dramatic and rapid rates. On today alone the index lost about 6% of its value, bringing total losses from the high point a month ago to over 20%. Such a sharp decline was not anticipated by many people, which makes it that much worse. The day is not completely lost for Japan, however, as the Yen was able to make some decent gains against the US Dollar.
Finally, the market event, or potential market event, that is weighing on every investor’s mind is the fact that easy monetary policies around the world may be put to rest sometime soon. This fear is true of a lot of places, but no truer than in the US where the Federal Open Market Committee is set to meet and discuss monetary policy next week. It is unclear up to this point what the exact topic of conversation will be, which means that investors will be speculating a particularly large amount in the next 5 to 6 days. As we head into the final day of the week, the hope is that gold and silver can catch a break and turn this into a positive week for precious metals, but whether that will happen or not is very unclear.