Gold Spot Price Open: $1,291
Gold Spot Price Close: $1,295
Change in Gold Spot Price:+$4
Silver Spot Price Open: $19.95
Silver Spot Price Close: $20.08
Change in Silver Spot Price:+$0.13
Gold and silver made small gains on Friday, but for the most part remained stagnant. After a collapse as monumental as we saw on Thursday, it was always going to be difficult for gold and silver to make big gains on Friday. Improved demand helped, but in no way was it enough to even come close to recuperating all of Thursday’s losses. At the end of the day gold gained about 4 dollars while silver picked up a little over a dime.
Increased demand for physical gold was the headline of the day as prices are at their lowest points in years. Things are so bad for precious metals that even Asian demand for the yellow metal has improved, despite it being disappointing as of late for this time of year. The thought of less bond money being pumped into the US economy has scared off precious metals investors and has thrown the commodities market into a bit of a frenzy.
The fact that no other major economic headlines were made during the night on Thursday and at all on Friday mean that the only thing that has had a chance to improve gold’s standing is increased demand. Hopefully next week is able to bring in some good news for metals markets but at the moment there are not many indicators pointing in the direction of a massive upswing in the price of metals.
Keep in mind that while Ben Bernanke alluded to the fact that bond buying may be limited in the near future, there were no real decisions made to support this. Even though the marketplace is still spiraling downward, things may not be as bad for precious metals as we currently think. Stay tuned next week as we will likely develop a better idea of what the price of gold and silver will look like going forward.
