Posted on July 16, 2015
Gold Spot Price Open: $1,150
Gold Spot Price Close: $1,147
Change in Gold Spot Price: -$3
Silver Spot Price Open: $15.16
Silver Spot Price Close: $15.07
Change in Silver Spot Price: -$0.09
Precious metals continued to slide on Thursday as a stronger US Dollar and weaker crude oil prices took their toll on the metals market. When all was said and done, gold finished downward by about three dollars while silver moved down by almost another 10 cents. Platinum and palladium also finished the day downward by a little more than 10 dollars. During this elongated slide, metals have rarely fallen by massive margins on any single day, but instead have partaken in a steady trek downward.
Earlier this week, on Monday, it was reported that Greek negotiators and European creditors had finally reached a deal that would grant Athens furhter bailout funds so long as it cooperated with admittedly harsh austerity measures. Even though a referendum held recently saw the people of Greece vote “no” on austerity, the Greek parliament saw the concessions it made as being necessary to protect the financial future of the nation.
Now that more money is on the way to Greece, this whole debt debacle can be rightfully put on the back-burner for the time being. The fact that this deal was reached only worked to aid global equity markets and increase the already skyrocketing risk-appetite that is beginning to consume the global marketplace. The European Central Bank held their monetary policy meeting today, but no alterations to policies were made in the wake of the Greece agreement.
In testimonies to the government this week, Federal Reserve chair Janet Yellen has reiterated time and time again that rate hikes can be expected before year’s end. Though a majority of the marketplace has been convinced of this for some time now, developments in recent months have forced popular opinion back and forth on multiple occasions. For example, during the winter months when economic data was less than stellar, most investors became temporarily convinced that the thought of rate hikes might be a premature one.
Then, come Springtime, the overall outlook of US economic data changed for the better and investors become convinced once more that rate hikes were a very real possibility for this year. For gold and silver, Ms. Yellen’s more hawkish monetary policy stance in recent months only serves to hurt spot values. This is so because higher interest rates mean that investors will be seeking out interest-bearing assets as opposed to the relative safety found in precious metals investments.
All in all, gold and silver are continuing to suffer from a lack of fundamentally bullish economic data from the US and elsewhere around the world. Should nothing change, many analysts envision that it will be difficult for gold and silver to halt this current slide.
All in all, Thursday was a fairly quiet day on the global marketplace, even despite the Greek deal going through. As we look ahead to the final day of the week it will be interesting if recent losses on the part of precious metals spot values will prompt some bargain-hunting buying or if there really is a diminishing interest in the purchase of physical metals. Going forward, how far metals can fall now becomes an interesting prospect for investors to consider.