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    JM Bullion Gold and Silver Market Update (7/30/14)

    Posted on July 30, 2014


    Gold Spot Price Open: $1,298

    Gold Spot Price Close: $1,297

    Change in Gold Spot Price: -$1

    Silver Spot Price Open: $20.57

    Silver Spot Price Close: $20.67

    Change in Silver Spot Price: +$0.10

    Precious metals were seen trading slightly lower for a majority of the day as a result of some upbeat US economic data and earnings reports. When all was said and done, gold fell by about 4 dollars while silver closed the day having gained about ten cents. Platinum and palladium also traded marginally lower for a majority of the day.

    More Upbeat US Economic Data Boosts US Equities

    Before the United States’ second-quarter GDP report was made public this morning, earnings reports dominated the US marketplace. Foremost among these reports was Twitter’s second-quarter earnings, which were far better than expected. In addition to the value of Twitter’s stocks jumping by more than 20% today, the company also increased its sales forecast for the duration of 2014. While this news did well to boost the value of Twitter’s stocks specifically, the US second-quarter GDP report worked to support the progress of US equity markets in general.

    Released earlier today, the United States GDP report showed that the US economy grew by more than 4% on an annualized basis in the second quarter. While equity markets, as of the writing of this post, are posting mixed results, all of this upbeat US economic data is making US equities look increasingly attractive to investors over the course of the next few months. Illustrating this perfectly was Michael Arone of Boston-based State Street Global Advisors when he was quoted as saying, “The economy is gaining traction and parts of the market are growing. If we look at the data around the earnings season, we think it’s very robust. It’s a very favorable environment for stocks.”

    As you could have probably guessed, today’s data has also worked to increase the value of the US Dollar. The US Dollar index, which measures the greenback against a basket of other currencies, has been on an almost uninterrupted ascent over the course of the month of July. With the euro consistently weakening it will be interesting to see just how far the USD can go.

    FOMC’s Impact Muted by GDP Report

    Unlike what has proven to be the case the last few months, today’s FOMC meeting concluding will not gain very much attention from investors. The reason for this is due to the overriding expectation that little to no information regarding US interest rates will be provided. Instead, it is widely believed that the FOMC’s meeting mostly revolved around their cutting Quantitative Easing by another $10 billion as part of their plan to be completely finished with the bond-buying initiative by sometime early this Fall.

    Still, there is no denying that all this upbeat economic data is working to convince the wider investing world that US interest rates will be on the rise sooner than later.


    Looking ahead to the last few days of the week, investors have some more US economic data to prepare for. This time around it will be Friday’s release of the most recent job growth figures from the United States in July. As of now, preliminary expectations are that more than 230,000 non-farm jobs were created during the month of July. Expectations for this US employment report are so lofty simply because last month’s data greatly exceeded expectations.

    What’s more, the market will continue to focus on geopolitical events as fighting in Ukraine and on the Gaza Strip is only intensifying with each passing day.

    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.