Posted on August 08, 2013
Gold Spot Price Open: $1,286
Gold Spot Price Close: $1,313
Change in Gold Spot Price: +$27
Silver Spot Price Open: $19.60
Silver Spot Price Close: $20.32
Change in Silver Spot Price:+$0.72
Gold and silver rebounded from their early week losses in impressive fashion on Thursday thanks to some short-covering by investors. Even amid a quieter trading atmosphere gold was able to gain about 27 dollars today while silver made gains just shy of 75 cents.
Thanks to bargain prices and lower spot values of both gold and silver, precious metals were able to see a corrective bounce take place on Thursday. A weaker US Dollar Index assisted gold and silver’s ascent as the Index dropped even further than it already had this week. Previous 5-week lows reached by the greenback were eclipsed on Thursday as the USD is now hovering around a 6-week low. Should the greenback continue to fall it is likely that gold and silver will experience even larger gains, though a continued decline of the US Dollar is not a guarantee.
Even though economic news out of Europe has been wholly positive thus far this week, the European Central Bank released a forecast on Thursday which suggested that the European economy will have contracted by about .6% by the end of 2013. Despite this negative forecast, the ECB went on to deliver positive news with a forecast of .9% growth in 2014. The short-run does not look positive for the Euro Zone, though the grand scheme of things is shaping up to be good for the European economy as a whole. It is important to keep in mind that these are merely ECB forecasts and that what actually happens as far as growth and contraction in the European economy is concerned is yet to be determined.
Gold and silver were also boosted on Thursday due to major increases of Chinese imports and exports on a year-to-year basis. Exports out of China in July of this year were 5% better than they were in July of 2012. Adding to that, Chinese imports grew by an astonishing 11% from last July to this most recent one. These two pieces of data not only improved the prospects of gold and silver, but gave a general boost to the entire raw commodities sector.
Now it becomes crunch-time to see if gold and silver can retain their recently elevated positions to close out the week.