Posted on July 17, 2015
Gold Spot Price Open: $1,147
Gold Spot Price Close: $1,135
Change in Gold Spot Price: -$12
Silver Spot Price Open: $15.09
Silver Spot Price Close: $14.97
Change in Silver Spot Price: -$0.12
As has been the case all week long, precious metals closed out proceedings on Friday by posting more losses. When all was said and done, gold lost more than ten dollars while silver declined by more than ten cents. Platinum and palladium lost on the day as well, both by little more than ten dollars.
On the back of prepared speeches delivered by Fed chair Janet Yellen to members of Congress this week, the US was once again reporting upbeat economic figures. For one, the USD is on course to have its best week since May as the greenback seems to be appreciating at every turn. The Dollar was doing well all week long, but got a bunch of help from Yellen’s comments to Congress, which made it clear that interest rates would be on the rise before the end of the year.
Another report released today showed that, for the 5th consecutive month, consumer prices in the US rose during June. It wasn’t only consumer prices that were being reported, as housing starts and applications for building permits surged during the month of June as well; with applications for building permits reaching their highest level in more than 3/4’s of a year. Though it is tough to say when rate hikes will ensue, many experts are pointing towards September as the first month in more than 6 years where the Fed will move its main interest rate further away from 0.
Speaking on the Dollar’s progress this week was Saxobank’s John Hardy, who said, “Part of the dollar recovery is because the clarity on Greece helps the euro come back in lower … That gets the focus back on moving towards policy normalization.” Now that Greece is on the back-burner and worries regarding their situation have, for now, subsided, the Dollar may very well continue this rally upon the start of next week.
Precious metals’ story this week was mostly unchanged as the theme of a lack of bullish news and an absurd amount of technical selling has continued to weigh on spot values. As we have been saying for weeks, the current market atmosphere is one that suggests gold and silver spot values are likely to move further downward before they make any sustained moves forward. Of course, just one headline can change this, but with interest rate hikes looming, positive US economic data streaming in, and an increased risk-appetite at present, there are absolutely no factors working in favor of gold and silver.
In case you were somehow unaware, these past 5 days have been quite poor for precious metals. With multi-month lows being recorded and no bullish data on the horizon, it is tough to say with any confidence that spot values will bounce back anytime soon. When we reopen things next week, it will be truly interesting to see if the greenback will continue venturing forward, or if this week’s rally will keep the Dollar in check. Other than that, there will not be an overload of economic data for investors to pay attention to; something that makes me think spot values may be in for another rought 5-day trading session.