Gold Spot Price Open: $1,364
Gold Spot Price Close: $1,371
Change in Gold Spot Price: +$7
Silver Spot Price Open: $23.16
Silver Spot Price Close: $23.07
Change in Silver Spot Price:-$0.09
Gold and silver experienced mixed results on Tuesday as gold made minor gains and silver posted almost negligible losses. When all was said and done gold picked up about 7 dollars while silver lost about 9 pennies.
The main story today came in the form of the continued decline of the Indian Rupee. Though the Rupee has been falling in value since the beginning of last week, it only became real news a day ago when it opened up this week continuing its decline. Now, the Indonesian Rupiah has also joined the landslide as more and more mid-level Asian currencies begin to depreciate rapidly. Higher interest rates in more prominent economies has caused mid-level currencies, such as the Rupee and the Rupiah, to be put under immense selling pressure which has done well to drive down the value of said currencies. As the large-scale sell-off of lower level Asian currencies continues, safe-haven demand for gold and silver has been given new momentum.
Also catching the attention of investors around the world on Tuesday was news of the FOMC’s release of minutes tomorrow. The minutes for the Federal Reserve’s Open Market Committee’s meeting in September are going to be dished out on Wednesday with many investors hoping that they will shed some sort of light on the future of monetary policy going forward. Despite the fact that the Federal Reserve has done more to confuse investors than it has to address their many concerns, investors are still holding out hope that tomorrow will be the day they find out what is going to happen to Quantitative Easing by the end of the 2013 calendar year. Even though this is the same hope displayed by many, I would bet that the FOMC’s minutes are going to be just as vague as many of the recent announcements and speeches made by members of the Fed.
Violence in Egypt rages on, further boosting the allure of gold and silver as safe-haven assets.
