Posted on July 01, 2014
Gold Spot Price Open: $1,319
Gold Spot Price Close: $1,326
Change in Gold Spot Price: +$7
Silver Spot Price Open: $20.96
Silver Spot Price Close: $21.07
Change in Silver Spot Price: +$0.11
Gold and silver spot values made marginal gains to end at another multi-month high on Tuesday. When all was said and done, gold picked up little more than 5 dollars while silver’s gains were just more than ten cents.
The widespread belief that interest rates in the US will remain steady for the foreseeable future is currently causing investor interest in precious metals to spike. This renewed interest in conjunction with escalating violence in Iraq and continued uncertainty in Ukraine is making for a current market atmosphere that is very favorable to gold and silver. After breaking through key points of technical resistance last week, both gold and silver have continued to edge higher. Undoubtedly helping this situation along is a USD Index that is trading below $79 and continues to grow weaker by the day. Now, many market analysts are making the claim that gold and silver spot values are in the midst of a rally that is just beginning. Though there is no real way of determining the direction of spot values over the coming days and weeks, it is important to note that metals are in the middle of a more than 3-week long uptrend and are looking as strong as they have this year.
In general, the lack of economic data and growing disinterest in the Iraqi civil war is making for a quiet trading atmosphere this week. While there is a major employment report from the United States to look forward to on Thursday, investors will have to endure a few more quiet days before that report is made public. After recent weekly jobless claims have been on the decline, the preliminary market expectation is that a healthy number of jobs will have been in added in June. In addition to the monthly employment report’s release on Thursday, the market will be paying close attention to the European Central Bank’s monthly policy meeting. After inflation levels failed to budge over the span of May to June, some investors are beginning to question the ECB’s recent decision to alter monetary policy.