Posted on August 03, 2015
Gold Spot Price Open: $1,098
Gold Spot Price Close: $1,088
Change in Gold Spot Price: -$10
Silver Spot Price Open: $14.85
Silver Spot Price Close: $14.60
Change in Silver Spot Price: -$0.25
Precious metals continued to feel pressure on Monday thanks to a market that currently is not very interested in metals at all. When all was said and done, gold lost about 10 dollars while silver finished downward by more than twenty cents. Platinum and palladium both finished down on the day as well, but platinum was the bigger loser of the two.
Monday opened up with some economic data from the US, and to everyone’s surprise it came back weaker than expected. For one, US consumer spending during June rose by the smallest margin in more than 4 months. Officially, the Commerce Department claimed that June consumer spending rose by only .2%; the smallest such margin since the beginning of the year. This bit of news is a bit confusing seeing as May’s consumer spending ticked up by just short of one whole percentage point. Though consumers were still out in full force during June, the modest rise is being accredited to fewer purchases of big-ticket items like houses, cars, and other major appliances. Though this is a telling statistic, this piece of data was mostly overlooked by the market.
A report from the Institute of Supply management released today concluded that the manufacturing sector of the United States lost momentum during July. According to the ISM’s Purchasing Manager’s index, a reading of 52.7% followed up June’s reading of more than 53.6%. Any reading above 50% is indicative of growth in that sector of the economy, so most people are not sure what to make of today’s data. On one hand, the reading being above 50% is a positive sign, but the fact that it is just barely over the 50% threshold indicated that manufacturing is having a tough time moving too far forward.
The greenback lost value on Monday thanks to the previously mentioned slew of downbeat economic data. Though the Dollar remains in good standing overall, today saw the currency back down from recent highs as other currencies took advantage. Normally, this might be a good sign for gold and silver, but the way things are going across the marketplace now, it is going to take a lot more than a bad day for the Dollar to give precious metals a boost.
July’s jobs data is due out on Friday, and for now that is the number one concern for investors both in the US and abroad. As far as international headlines are concerned, there wasn’t all that much to talk about today. China reported more downbeat economic data today, but it was mostly ignored by the marketplace. Investors will continue to keep a close eye on the Asian giant moving forward, because it is highly likely that some sort of economic reform will be taking place there before the end of the Summer.
All in all, today was a fairly slow day across the global marketplace. There wasn’t much for investors to take into consideration apart from a batch of US economic data. Despite the data coming back weaker than anticipated, it is still generally agreed that the Fed will move to raise interest rates sometime later this year, with September’s FOMC meeting being the most likely date at this juncture. Heading into the week further, you can bet that the market will continue to focus on any and all economic data from the US, especially this Friday’s jobs report from July. As it stands, the market is expecting to see at least 200,000 non-farm jobs to have been added to the US economy during July, though some feel like this figure will be much larger than that.