Posted on June 26, 2013
Gold Spot Price Open: $1,278
Gold Spot Price Close: $1,227
Change in Gold Spot Price: -$51
Silver Spot Price Open: $19.66
Silver Spot Price Close: $18.59
Change in Silver Spot Price:-$1.07
Gold and silver experienced yet another day of major losses as the heavy liquidation of precious metals seems to be what most traders are taking part in. When all was said and done gold lost a little over 50 dollars while silver’s losses edged over a dollar by a little bit.
Stronger US economic data on Tuesday prompted an increased amount of selling of silver and gold on Wednesday. At this point, any positive economic news out of the US will be taken as an affirmation of Ben Bernanke’s seeming insistence on winding down monthly bond-buying in the US. This pumping of money into the economy has been a mainstay in the US for quite some time now which means that the abandonment of it could flip the current state of investing on its head. While prospects are improving for the average American and their respective households, the average precious metals investor is seeing his/her investment’s value decline rapidly on a daily basis.
Though monetary policy in the United States may be undergoing some changes in the near future, Mario Draghi, president of the European Central Bank, announced that his region will keep policies as accommodating as they are now. Tightening monetary policy in Europe does not seem like the right move now anyway as many economies are struggling to keep their head above water. What Europe needs is someone to take action in order to help remedy the countless debt, economic, and other financial problems facing the EU and the nations that comprise it.
Something else that is help keeping the spot values of both gold and silver on the decline is the fact that Asian demand for gold (and silver) is very low for this time of year. In India, a newly placed tax on imported gold is making the common Indian citizen shy away from the metal, especially in the midst of a falling spot value. Though even if there were strong physical demand for gold and silver, it would probably not be enough to turn around the $150+ losses we have witnessed gold suffer over the past week or so.