Posted on August 22, 2013
Gold Spot Price Open: $1,370
Gold Spot Price Close: $1,377
Change in Gold Spot Price: +$7
Silver Spot Price Open: $23.08
Silver Spot Price Close: $23.17
Change in Silver Spot Price:+$0.09
Gold and silver made modest gains on Thursday as no real, major stories caught the attention of the world marketplace. At the end of the day gold gained about 7 dollars while silver picked up a penny shy of a dime.
Now that investors have had a full day to digest the FOMC’s minutes from yesterday, it is clear that the FOMC did little to answer any looming questions about the future of monetary policy in the United States. The vague FOMC minutes did little to answer any questions, though investors interpreted the minutes as indicating that Quantitative Easing will likely be done away with sooner rather than later. On the whole, the FOMC minutes indicated that easy monetary policies, in places other than solely the US, are likely going to be coming to an end in the near future. This news was good for both the US Dollar and US stocks, but gold and silver were able to make gains today nonetheless.
US and German 10-year notes hit highs overnight last night for the second time in the last few days.
Asian currencies continue to depreciate with the Turkish Lira joining the mix. Both the Indian Rupee and the Lira hit record lows against the Dollar overnight as the Asian currency crisis rages on. The governments of places like India and Indonesia have taken steps to alleviate the selling pressure that their respective currencies are experiencing, though up to this point success has been hard to come by. The fear remains the same as far as the Asian currency crisis is concerned, and that fear is that an increasing number of Asian currencies will begin to depreciate rapidly. Though large-scale depreciation has not yet been seen across Asia, market experts are not ruling it out.
We will continue to monitor this situation and all of its latest developments.