Posted on September 12, 2013
Gold Spot Price Open: $1,363
Gold Spot Price Close: $1,325
Change in Gold Spot Price: -$38
Silver Spot Price Open: $23.17
Silver Spot Price Close: $21.98
Change in Silver Spot Price:-$1.19
Gold and silver both lost significant value on Thursday due to some technical selling after a surprising jobless claims report. When the day was through, gold lost almost 40 dollars while silver lost roughly 20 cents more than a dollar.
The major reason behind why precious metals lost such significant value today was a jobless claims report which saw such claims fall by 31,000. This is the largest such decline in jobless claims since 2006, though the Labor Department was quick to chime in, saying that the numbers are slightly skewed due to some reporting errors. When it came down to it, the Labor Department stated that two states were not included in the most recent report.
Despite the data of two states being absent, this week’s surprising decline in jobless claims still put heavy selling pressure on precious metals.
All in all, this week has been typified by an increase in investor appetite for risk. In laymen terms, all I am saying is that the current economic atmosphere is one which leads investors to see stock market investments as more valuable than the safer, more reliable investments in gold and/or silver. Basically, investors are looking to make big gains in a short amount of time via stocks as opposed to purchasing safe-haven precious metals and sitting on them as they slowly accrue value.
The fact that the US, Syria situation is becoming less and less tense also helps take away the safe-haven qualities of gold and silver. Even though President Obama of the United States made televised remarks alluding to the fact that he plans on following through with a military strike on Syria, Russian plans to put Syrian chemical weapons under the jurisdiction of the international community has helped ease tensions.
As we look ahead to next week, the main thing on investors’ minds is the FOMC meeting. It seems as though we are only days away from a major shift in US monetary policy, though we will just have to wait and see if any types of change come to fruition.