Posted on August 14, 2013
Gold Spot Price Open: $1,337
Gold Spot Price Close: $1,322
Change in Gold Spot Price: -$15
Silver Spot Price Open: $21.43
Silver Spot Price Close: $21.50
Change in Silver Spot Price:+$0.07
Gold and silver posted mixed results on Tuesday after some more upbeat economic data from both the US and Europe. When all was said and done gold lost about 15 dollars while silver made small gains of about 7 cents.
Investors were greeted first thing this morning by some more positive economic data out of the European Union. Even though many were convinced that last week’s superb economic reports from Europe were the last such data we would see from that region in a while, they were wrong. Industrial output over the course of May to June rose by about .7% while industrial output from the first quarter of 2013 to the second quarter rose by an astonishing 1.1%. A recent report has indicated that, by the end of 2013, the final numbers will show that the EU economy has contracted, though the same report stated that 2014 will more than likely be a year of positive growth for the European economy. Whether any of this is true or not has yet to be seen, though we will be given a clearer picture of this over the next couple of months.
The US also had a bit of economic data on the slate for today in the form of the latest retail sales report. From June to July, US retail sales improved by about .2%, the fourth consecutive month where the United States has seen an increase in retail sales. At this point, any positive economic news out of the United States will strengthen the belief that Quantitative Easing will be at least tapered before the end of 2013, if not done away with completely.
Dennis Lockhart, president of the Atlanta Federal Reserve bank, made another statement today, saying that recent economic data has not been consistent enough to lay out a concrete plan regarding what to do with QE in the future. This is the typically vague response we have come to expect to hear from the Federal Reserve and is none too surprising at all. If Lockhart wouldn’t have made this statement, it would have likely translated into greater losses for gold as investors would have probably seen their confidence in the ending of QE before the year’s end grow significantly.