Posted on August 05, 2013
Gold Spot Price Open: $1,313
Gold Spot Price Close: $1,304
Change in Gold Spot Price: -$9
Silver Spot Price Open: $19.91
Silver Spot Price Close: $19.77
Change in Silver Spot Price:-$0.14
Gold and silver began the first full week of August on a bit of a negative note as both metals ended the day having lost value. When all was said and done on Monday, gold lost about 9 dollars while silver’s losses were closer to 15 cents.
In the overnight hours the HSBC Purchasing Manager’s Index from China was released and the news ended up being very positive for the Chinese economy. July’s PMI ended up remaining stagnant and is at the same place it was at the end of June, at a reading of 51.3. It should be noted that any reading above 50 indicates that the Chinese economy is expanding as opposed to experiencing contraction, something we saw from China earlier this summer. Investors will continue to watch China as later this week we are expecting to hear the latest Chinese data in regards to trade and industrial production.
The Euro Zone received a better PMI reading in July than it had in June, a reading that transitioned the European economy from contraction to expansion. The PMI reading for Europe rose from 48.7 in June to a reading of 50.5 in July. Though this is a reading just barely above the 50 threshold, it is still a sign that the collective European economy is on the road to recovery, even if it is a slow road to recovery.
Positive economic news from prominent economies such as Europe and Asia is almost always going to be negative for the spot value of gold and silver. The fact that the USD Index traded steadily and even up for part of the day put some consistent downward pressure on gold and silver as well. Apart from the upcoming Chinese economic data, this week is expected to be slow as far as major economic developments go.