Posted on August 14, 2015
Gold Spot Price Open: $1,118
Gold Spot Price Close: $1,115
Change in Gold Spot Price: -$3
Silver Spot Price Open: $15.54
Silver Spot Price Close: $15.28
Change in Silver Spot Price: -$0.26
Gold and silver both posted losses to close out a week that actually saw both metals eek out gains. When all was said and done on Friday, gold lost about three dollars while silver lost a bit more than 25 cents. Platinum and palladium finished the day having posted mixed results, but neither metal ended too far from where it began the day.
The US Dollar managed to bounce back a bit on Friday thanks to yet another day of upbeat US economic data. Though none of the reports released today were viewed as being overly important, it was still encouraging for investors to see the US continue to output reports that beat the expectations of the market. Today, we received wind of an upbeat outlook on US industrial production, the producer price index, and consumer sentiment. Even though these reports are not the most hawked over by the market, they do well to complement Thursday’s batch of upbeat retail sales reports as well as the better-than-expected reading on the monthly average of unemployment benefits claims.
Despite being released yesterday, investors were still talking about the retail sales report from the month of July. The reason for this is due to the fact that the majority of this year was taken up by reports that consistently missed the mark. Now that we are seeing retail sales tick upward instead of downward, investors have no choice but to believe in the growing strength of the US economy. All the data that has been released over the course of the past few days only serves to help the US Dollar and strengthen the belief that interest rates will, in fact, be hiked come this September.
After talks, arguments, and discussions lasted through the night, Greece awoke this morning to the news that the latest 80+ billion euro bailout deal was finally agreed upon by Parliament. This is now the 3rd such bailout Greece has received in the last 5 years, but the hope this time around is that these monies will be able to help Greece sort out their financial situation once and for all. With a more than 3 billion euro payment due to creditors in less than a week’s time, the Parliamentary vote could not have come at a more crucial time. Now, the real question is with regard to what Greece will be doing with the other more than 80 billion euros it is set to receive.
For now, it is likely that Greece and its financial problems will fade to the background of the marketplace’s concern, but I would not be at all surprised to see Greek’s problems surface once more a few months down the road. This development did not have much of an impact on the European marketplace, as most investors have more or less tuned themselves out of any talks regarding Greece’s financial and economic situation.
As much as it pains me to say, investors are forced to reflect on this week as being one that was positive for gold and silver. Though gains were kept to a minimum by the time markets closed today, the fact of the matter is that investors are willing to take any gains–even small ones–in the midst of this bearish market. Looking ahead, I anticipate that the market will continue to preoccupy itself with any and all economic data that may stream in from the United States as it will likely have a direct influence on the way investors think about the forthcoming hiking of interest rates.