Gold Spot Price Open: $1,235
Gold Spot Price Close: $1,253
Change in Gold Spot Price: +$18
Silver Spot Price Open: $19.66
Silver Spot Price Close: $19.67
Change in Silver Spot Price:+$0.01
Gold made some modest gains on Monday as silver stayed stagnant on what some are calling a corrective bounce. On the day gold picked up about 18 dollars while silver gained a penny and not much more.
Some manufacturing data out of China came in weaker than expected which was positive for precious metals and more or less confirmed what many people have been thinking about the Chinese economy lately. China’s Purchasing Managers’ Index came in at 50.1, which is 7 tenths worse than what was recorded in May. Though the reading was weaker in June than it was in May, any reading above 50 suggests that there is at least some growth in Chinese manufacturing.
The HSBC Manufacturing PMI for China came in at 48.2, down from May’s reading of 49.2. China wasn’t the only country experiencing a weaker HSBC Manufacturing PMI as South Korea, Taiwan, and Indonesia all suffered a similar fate.
Despite this week being a holiday week for the US, there is still going to be a lot of economic data due out. Thursday is when the United States celebrates the Independence Day Holiday, and though many people use this Thursday holiday as a reason to take the day off on Friday, investors are still going to want to pay attention to the world economy due to a key US Jobs Report being released on the last day of the week.
While Brazil has been at the center of world news due to its massive staged protests, Egypt wants a piece of the limelight as many Egyptian citizens have been taking to the streets in order to protest against the ruling government. If either of these two scenarios becomes violent (or more violent), you can expect to see increased safe-haven demand for gold and silver. In times of political unrest, safe-haven demand for gold rises significantly and such will be the case if protesters in both or either of these two countries face off with police forces.
Keep an eye on the news as this week is shaping up to be a wild one for precious metals investors.
