Posted on September 11, 2014
Gold Spot Price Open: $1,246
Gold Spot Price Close: $1,242
Change in Gold Spot Price: -$4
Silver Spot Price Open: $18.99
Silver Spot Price Close: $18.76
Change in Silver Spot Price: -$0.23
Precious metals continued along their downward-facing trend on Thursday despite another quiet day of trading. When all was said and done, gold lost about 4 dollars while silver declined by nearly 25 cents. Platinum and palladium both finished the day having lost more than $10.
In news released during the overnight and early morning hours of Thursday, it was reported that China’s Consumer Price Index improved by 2% on an annualized basis in August. The 2% upward move fell short of the 2.3% increase witnessed in July and the 2.2% increase expected by investors and experts. The weak CPI report provided metals and all raw commodities with some underlying support as it is believed that China now has room to hold off on tightening its monetary policy.
Giving commodities another boost was a UN report released late yesterday which claimed that global food prices fell to a 4-year low in August. Despite this slight support, the bearish trends on the part of spot gold and silver have continued today.
For yet another day this week, the ceasefire in Ukraine seems to be holding. Fighting that had been taking place along Ukraine’s Eastern corridor have since calmed down and many of the most war-torn cities and towns are finally receiving the help and support they have needed for such a long time. A report from Ukrainian military officials claimed that nearly all Russian troops have moved back away from the Russia-Ukraine border. It will be interesting to see just how long the ongoing ceasefire remains in place, because at this point it has already gone on much longer than anyone anticipated it would.
In other news on the geopolitical front, US president Barack Obama announced last night that the US military has full intentions of increasing the use of aerial force against ISIS militants in Iraq and Syria. While saying this he made sure to mention that the increased use of force will in no way translate into US military boots on the ground. The market was more or less expecting to hear Obama say these things, and haven’t really had much of a reaction.
For yet another day, the USD Index ended the trading session in the green. Though the Index had a fairly volatile day, it was clear that the market still favors the greenback by the time things were all said and done. Against the yen specifically, the USD hit a 6-year high today.
In other currency market news, the British Pound was offered a bit of respite after a new poll from Scotland indicated that 53% of voting Scots intend on staying with the United Kingdom. Just a few days ago, another poll from Scotland unnerved investors after it was claimed that 51% of those polled were in favor of an independent Scotland. The referendum on Scottish independence will be held next week and is going to battle the FOMC meeting for the market’s undivided attention.
Looking ahead to the last day of the week, it is clear to see that most investors are already focusing on next week’s calendar of events. With the all-important FOMC meeting, Scottish referendum vote, and a good bit of economic data on the slate, it is already looking as though next week will be a good bit busier than this 5-day trading session has thus far proven to be.