Posted on August 15, 2013
Gold Spot Price Open: $1,322
Gold Spot Price Close: $1,336
Change in Gold Spot Price: +$14
Silver Spot Price Open: $21.41
Silver Spot Price Close: $21.92
Change in Silver Spot Price:+$0.51
Gold and silver posted positive gains for the second time in three days as gold more than makes up for the losses it suffered yesterday. When all was said and done, gold picked up about 14 dollars while silver’s gains were about a penny over a half dollar.
The main piece of economic data on the slate for the day was the most recent US PPI, or producer price index, report. Many were awaiting a PPI reading that exceeded expert predictions, though quite the opposite was realized. The report on wholesale goods showed that from June to July, no changes were realized. This is coming on the back end of a reported .8% rise in the price of wholesale goods which was recorded over the time period of May to June. Core PPI, a reading which excludes food and energy prices, showed that over June to July, prices only rose by .1% compared to an expected rise of about .2%.
This weaker economic data pushed gold forward a bit while at the same time delivering a blow to those investors who continue to be confident that QE is going to be done away with by the end of 2013. Now it comes time for investors to look ahead to the FOMC’s next meeting in September. It is anticipated that the FOMC’s next meeting will shed some more light on the future of QE, though only time will tell if that is the case.
There was more good news out of the European Union on Wednesday, confirming that the region has, in fact, risen from the doldrums of economic recession. EU GDP from the first to second quarters of 2013 rose by about .3% though this year’s second quarter GDP was down almost a whole percent from the second quarter of last year’s.
The German government held a 10-year bond auction on Wednesday which produced a yield of about 1.80%; the largest such yield in well over a year. These two news stories, coupled with the previous 7 days’ worth of positive economic reports from Europe are increasing investor confidence in the region. Now comes the time where we see if the EU can sustain their positive run of form.