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    JM Bullion Gold and Silver Market Update (8/4/15)

    Posted on August 04, 2015


    Gold Spot Price Open: $1,093

    Gold Spot Price Close: $1,089

    Change in Gold Spot Price: -$4

    Silver Spot Price Open: $14.62

    Silver Spot Price Close: $14.66

    Change in Silver Spot Price: +$0.04

    Precious metals finished the day mixed but not too far from where they opened. When all was said and done, gold lost another 4 dollars while silver improved its standing by a modest four cents. Platinum and palladium finished the day mixed, with platinum losing close to ten dollars while palladium managed to add a few bucks.

    Hawkish Comments Regarding Interest Rate Hikes

    After surging out of the gates, precious metals calmed down a bit by the time the day was through. A stronger US Dollar and comments from the president of the Atlanta Federal Reserve ended up working against gold and silver during the last few hours of the trading day. In a statement today, Atlanta Federal Reserve president Dennis Lockhart was quoted as saying that it would take “significant deterioration” of the US economy in the immediate future for him to not be convinced that raising interest rates is the correct move to make. In fact, Lockhart is like many others in that he sees September as the likely time interest rate hikes will ensue.

    After starting off the week turbulently, the US Dollar was able to bounce back on Tuesday and managed to gain roughly .4% against a basket of rival currencies. Now, the eyes of the market turn to Friday’s non-farm payrolls figures from July as they will definitely peak the interest of investors both in the US and abroad. Should the jobs data be upbeat and in line with expectations, this may lend even more credence to the belief that interest rates will, in fact, be hiked come the conclusion of September’s FOMC meeting.

    Palladium is continuing to suffer thanks to a lag on the part of the Chinese economy. Strong car sales really help the metal, and with Chinese consumers not making as many purchases as originally forecast, palladium is taking a hit.

    All in all, the current state of the global marketplace is such that it will be incredibly difficult for gold and silver to make much of any lasting progress. Spot gold is currently hovering near a 5.5 year low, and with upbeat jobs data expected later this week those spot values may fall even further. The labor market has long been called into question by investors, and finally it seems as though we are witnessing some solid, consistent growth as more Americans are being put to work. In addition, wage growth is making an appearance for the first time in years in many sectors, and this only works to brighten the overall picture of the US labor market.


    As is already plain to see, metals are continuing to slide downward as they are in the midst of a bearish trend that has lasted the better part of the last month and a half. On the whole, this week is expected to remain generally quiet and free from major markets-moving news with the exception of the jobs data that is due out on Friday. Precious metals investors are looking forward to Friday’s data, but with most expecting upbeat jobs figures this anticipation may very quickly turn to despair. Many are claiming that the conclusion of this week is incredibly important for precious metals, and I cannot argue with that, but as it stands most signs are pointing towards gold and silver losing even more value by the time next week opens up. That much, however, remains to be seen at this current point in time.

    All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.