Gold Spot Price Open: $1,244
Gold Spot Price Close: $1,245
Change in Gold Spot Price: +$1
Silver Spot Price Open: $18.84
Silver Spot Price Close: $18.85
Change in Silver Spot Price: +$0.01
Precious metals continued to hold steady for a second consecutive day, mostly thanks to investors holding their positions as they await key pieces of economic data due out later this week. When all was said and done on Tuesday, gold was able to gain about a dollar while silver remained near even for a majority of the day, only picking up a penny or two.
Speculation with regard to Thursday’s edition of the European Central Bank’s monthly policy meeting continued to be a major theme around the market today. Economic data out of the EU today included the annual rate of inflation for May, which came in up .5%. This number fell short of the +.7% year on year rise that was originally expected by the market. As you probably could have guessed by now, today’s inflation report once again alluded that deflation might very well soon become a large problem for Europe if preventative measures are not taken. Conveniently enough, however, a majority of the investing world is under the impression that the ECB will announce future monetary stimulus plans aimed at fighting deflation come the conclusion of Thursday’s meeting.
Added monetary stimulus will more than likely cause a devaluation of the euro currency such that the US Dollar will be able to gain even more momentum than it already has over the past month or so. Many market analysts have been convinced that the institution of new monetary stimulus in Europe will prop up the Dollar and, in turn, put even more downward pressure on gold and silver spot values. On the other hand, however, some feel as though fresh stimulus will work to benefit precious metals as it has done in the past. Though it is impossible to tell just how the market will react to the news of monetary stimulus (if it is even announced), we do know that most every investor around the world will be paying attention to Thursday’s meeting and any subsequent post-meeting statements made by senior ranking members of the ECB.
