Gold Spot Price Open: $1,298
Gold Spot Price Close: $1,283
Change in Gold Spot Price:-$15
Silver Spot Price Open: $20.17
Silver Spot Price Close: $19.71
Change in Silver Spot Price:-$0.46
Gold and silver lost some more value today as not much has changed in the broad view of the world economic atmosphere. At the end of the day gold lost about 15 dollars while silver’s losses came closer to 50 cents.
With the US Dollar and bond yields on the rise, there is little room for gold and silver to do anything besides decline in value. Stock markets around the world continued to decline as well highlighted by huge sell-offs in the Asian marketplace.
We will be keeping our eyes on China as the world’s second largest economy is showing further signs of distress. A liquidity crisis is beginning to show signs of life in China as well as interest rates remain high, and cash funds are in short supply, despite a large demand. The Shanghai Composite, China’s stock index, has fallen by over 5% today after monetary officials in the country have announced that they will retain their current policies, something that could be the impetus for a full on liquidity crisis.
The US Dollar had a great day, though the same cannot be said for many other currencies including the Canadian Dollar and the Australian Dollar. Many non-major currencies are suffering as well as many investors are dumping these dollars and grabbing US Dollars whenever and however they can. With Ben Bernanke, US Federal Reserve Chairman, making comments alluding to the fact that monthly Fed bond-buying might be done away with in the coming months, investors have taken the label of “safe haven asset” away from gold and given it to the US Dollar.
With few major economic reports cued up for this week it is not looking like gold or silver will be able to make a big comeback, though crazier things have happened in the past.
