Posted on June 05, 2013
Gold Spot Price Open: $1,398
Gold Spot Price Close: $1,404
Change in Gold Spot Price:+$6
Silver Spot Price Open: $22.51
Silver Spot Price Close: $22.59
Change in Silver Spot Price:+$0.08
Gold and silver both moved more sideways than anything on Wednesday as little movement was the story of the day. Though metals did not do much, the day was still a positive one as gold picked up about six dollars and silver’s gains were about 8 cents.
There was one US economic report to talk about today, and that was the ADP national employment report which showed weaker than anticipated data. This report caused the US Dollar to lose some ground which was always going to give gold and silver the room they needed to move forward a bit.
In Asia, the Japanese Nikkei Index fell yet again in the overnight hours, bringing its two-week losses to about 18%. While we saw some decent gains posted by Japanese stocks and bonds yesterday, such fortunate results were not able to be carried into Wednesday. Because Japanese stocks suffered today, the Yen was able to make some gains against the dollar which was good for precious metals. The Asian marketplace as a whole has been downtrodden this week as its two front-running economies, Japan and China, are very clearly limping along. We have known for some time now that China’s economy is not doing so well, but as the days past it seems as though the same sentiment is true for Japan too.
More weak economic news out of Europe was announced on Wednesday, though at this point weak economic news is all we have come to expect from the region. Retail sales were down by about half a percentage point in April and were down over a whole percentage point when compared to April of last year. If that weren’t enough, Markit, a European data company, reported that European manufacturing and service sectors came in at a reading of 47.7 in May, compared to a 46.9 reading this past April. While these numbers may be as good as insignificant for you, it should be noted that a Markit reading under 50 suggests that the economy or economies being analyzed are experiencing contraction. This marks the second report in two weeks that indicate the eurozone and its economies may be in the midst of a contraction, with no end in sight.
Tomorrow we will see the leaders of the European Central Bank convene for their latest meeting with hopes high that they will at least get started on trying to tackle Europe’s mounting economic and debt problems.