Posted on July 31, 2015
Gold Spot Price Open: $1,091
Gold Spot Price Close: $1,097
Change in Gold Spot Price: +$6
Silver Spot Price Open: $14.83
Silver Spot Price Close: $14.84
Change in Silver Spot Price: +$0.01
Precious metals were able to capitalize on a weaker US Dollar on Friday and gained back a small amount of the value that had been lost over the past few weeks. When all was said and done, gold managed to gain a little more than five dollars while silver added only a penny or two. Platinum and palladium both lost on the day, but their combined losses did not exceed ten dollars.
It has been no secret that the US Dollar has been performing well for a majority of the month, but the greenback finished today downward against a basket of rival currencies to end July on a somber note. According to experts, an all-time low rise in employment costs during the second quarter of this year was at the helm of the Dollar’s retreat today. Thanks to this, gold and silver were finally given a break of sorts.
If the employment costs figure was bit better, most market experts agree that there really isn’t much else stopping the Fed from pulling the trigger on interest rate hikes come this September. Now, and thanks to this data, there are still a select number of investors who think that it may be a bit later than September when we do finally see rates boosted for the first time in more than 5 years. For gold and silver, the hiking of interest rates is not such a good thing, but for today, investors can take solace in the fact that any gains were realized because the last few weeks have seen nothing but downward movement on the part of metals.
Today, the International Monetary Fund announced that it would not longer be willing to participate in future Greek bailouts should they come to fruition. The IMF cited massive Greek debt along with the government’s inability to implement functional reforms as the main reason behind their statement. While the IMF may fulfill an advisory position in the implementation of economic reforms and things of that nature, it does not want to become any more entrenched in what has proven to be a black hole for money.
In case you missed it, Greece and international creditors settled on a bailout deal that pumped the cash-strapped money full of the cash it needs to get back on its feet. Though banks are open and business is back to normal, Greece still has a long road to full recovery and has so far barely even embarked upon their journey down that road. I imagine it will be a long while before Greece is making economic headlines, I am confident when I say that Greece’s financial problems will be a major talking point across the global marketplace at some point in the future.
All in all, this week was mostly a miss for gold and silver as spot values did not do all that much moving. We are still seeing metals entrenched in a downward trajectory, but this week offered a bit of respite from the massive declines we witnessed both last week and the week before. Looking ahead to next week, it is clear that the eyes of the world will remain fixated on the US economy and any data emanating from it. I also expect month-end pieces of data to trickle in from other economies too, but I imagine that most of these data points will be overlooked by the market.