Posted on July 09, 2015
Gold Spot Price Open: $1,164
Gold Spot Price Close: $1,163
Change in Gold Spot Price: -1
Silver Spot Price Open: $15.23
Silver Spot Price Close: $15.46
Change in Silver Spot Price: +0.23
Precious metals finished the day mixed on Thursday, but were able to put somewhat of a halt to the slide that began earlier in the week. When all was said and done, gold lost a dollar from overnight gains while silver somehow managed to tack on nearly 25 cents. Platinum and palladium continued to slide, with platinum losing only a few dollars while palladium moved down by more than ten.
Thanks to a sluggish start to 2015 on the part of the United States and a host of other factors, the IMF today announced that they would be reducing their forecast for global growth. Compared to predictions of 3.5% global growth made back in April, the IMF announced that it is now only expecting the global economy to grow by 3.3%. This small reduction is not the biggest deal, but does well to highlight how much the United States’ Q1 struggles affected the overall global economy.
If that initial bit was perceived as bad news, investors will be delighted to hear that early predictions from the IMF hold that the global economy qwill grow by almost 4% by the end of 2016. Of course, this is just a prediction, but it also does well to highlight the overall strength of the global economy and that the global economy is continuing to build strength after the recession of 2008/09. Still, with Greece and China still on the front-burner, there is no way of saying for sure that such a lofty expectation will be lived up to. That much we will simply have to wait and see in order to find out. In a statement, the IMF addressed the ongoing Greek crisis by saying, “Developments in Greece have, so far, not resulted in any significant contagion. Timely policy action should help to manage such risks if they were to materialize.”
After a tumultuous first half of the week, the overall global marketplace seemed to calm down a bit on Thursday. This relative calm prompted some risk-appetite in global equity markets, especially those that suffered from China’s downturn. Of course, whenever you hear the words risk-appetite, you can almost guarantee that gold and silver will be affected negatively–and that is exactly what happened today. Though metals did not suffer significant losses (and silver actually managed to gain), it is clear to see that current market conditions are such that gold and silver making lasting gains is an impossibility.
Chinese stocks in particular did well today after Wednesday’s losses. The bounce back on the part of Chinese equities has more to do with the Chinese government stepping in and rectifying things than it does with anything else. It must be said, however, that China’s propping up of its equity market is nothing more than a temporary fix. I would not be at all surprised if China’s money economic and financial problems make their way back to the front-burner before the summer is through.
Though the first four days of this week have not been so kind to metals, investors are looking to Friday as a day that will set the tone for next week. Most are hoping that low spot values will drive bargain-hunting buying, but I am skeptical as to whether bargain-hunting alone will be enough to bring spot values back up above key thresholds. Tomorrow will likely be another slow day, but with all that has been happening recently that much is likely to change at any point in time.