Posted on June 27, 2013
Gold Spot Price Open: $1,231
Gold Spot Price Close: $1,200
Change in Gold Spot Price: -$31
Silver Spot Price Open: $18.76
Silver Spot Price Close: $18.50
Change in Silver Spot Price:-$0.26
Thanks to some remarks from the president of the Atlanta Federal Reserve, gold and silver continued on their very steep decline. Today alone saw gold close in on falling below $1,200 as it dropped about 31 dollars, while silver dropped over a quarter.
Dennis Lockhart, president of the Atlanta Federal Reserve, announced that the Fed has plans of reducing its balance sheet. This remark means that monthly Fed bond-buying as well as Quantitative Easing may be done away with sometime down the road. This comment alone had enough power to drive the price of gold down even further.
In addition to this, Lockhart announced that interest rates will likely be raised by 2015. We have seen a trend recently, and that is whenever someone from the Fed makes an announcement on the future of monetary policy, specifically government monthly bond-buying, gold and silver tends to move dramatically one way or another.
Something that doesn’t and hasn’t helped this situation at all is the fact that major Asian countries like China and India have been showing inordinately small demand for gold. Usually, this time of the year sees the Asian region buy gold more than just about any other place in the world.
At this point it is becoming a game to see how far gold and silver will fall. Last Thursday we thought that the $100+ decline we saw gold partake in was dramatic, but since that day the yellow metal has lost almost an additional $100. Investors anxiously await to see if the last day of this week will provide any sort of relief for the metals, though it is looking highly unlikely. The last few days have been the same in that the morning sees gold and silver post modest gains that are eventually completely overturned and transformed into significant losses by closing time.