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    JM Bullion Gold and Silver Market Update (6/6/16)

    Gold Spot Price Open: $1,247

    Gold Spot Price Close: $1,248

    Change in Gold Spot Price: +$1

    Silver Spot Price Open: $16.49

    Silver Spot Price Close: $16.44

    Change in Silver Spot Price: -$0.05

    After finishing out last week solidly, gold and silver moved forward again on Monday, though only by marginal amounts. When all was said and done, gold managed to gain about 2 dollars while silver ticked upward by little more than 5 cents. Platinum and palladium also gained on the day, though like gold and silver, their gains were more modest than anything else.

    Metals See Follow-Through Support as Markets Digest Yellen Speech

    While it was not entirely too shocking to see, precious metals were able to move forward yet again on Monday thanks to what is looking more and more like a change in outlook on the part of global investors. While only a week ago you would be hard-pressed to find a single investor who wasn’t expecting US interest rates to be hiked by the end of the month, you are now going to find it difficult to find a single investors who is entirely convinced that rates will, in fact, be raised this month. The reason for this sudden change in opinion on the part of investors was a Labor Department report released last Friday that showed fewer than 40,000 non-farm jobs created during the month of May. Seeing as even the most conservative of estimates called for at least 100,000 jobs to have been created, it is easy to see why people were so taken aback by the data.

    What’s more, the likelihood that rates would be risen this month was something that heavily relied upon the tone of employment data. Up until last Friday the reports streamed in with little issue, but the Labor Department data sent the global marketplace into a shock.

    Today, investors geared up for a scheduled speech delivered by Chair of the Federal Reserve, Janet Yellen. In her remarks, Yellen did not offer much in the way of fresh insight into how the Fed now feels about hiking rates in June. What she did say, however, was that the Fed still definitely wants to raise rates, but she did little elaborating as to when that might be and by how much they will be raised. In just a week’s time, the near-term future for the US economy went from being set in stone, to anything but that.

    Stocks, Oil Rise on the Day

    Perhaps preventing metals from making larger gains on the day was the fact that both US stocks as well as crude oil both moved forward. In fact, stocks in the US performed quite well across the board. While this is not so good today, it does look good that metals were able to eek out gains even while other, competing asset classes did the same. Stock indexes in the US managed to finish today at new highs, and this is also directly related to the change in outlook regarding interest rate hikes.

    Crude oil also attempted to push above the $49/barrel mark on Monday and this is yet another factor that was working against gold and silver. With some persistent factors still diminishing the global daily output of crude oil, it is unclear when things will get back to normal.

    Wrap-Up

    To be fair, Monday was a fairly quiet day across the global economy. As we move forward into the week you can bet that the continued focus of investors will be the future of interest rates in the US. Though it seems as though there are going to be very few opportunities to receive additional interest rate information, that will not stop investors from around the world from continuing their speculation. For now, precious metals are on the receiving end of some support, but should interest rate hike expectations creep back into the picture that support may evaporate as quickly as it appeared.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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