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    JM Bullion Gold and Silver Market Update (9/16/14)

    Posted on September 16, 2014


    Gold Spot Price Open: $1,235

    Gold Spot Price Close: $1,237

    Change in Gold Spot Price: +$2

    Silver Spot Price Open: $18.71

    Silver Spot Price Close: $18.82

    Change in Silver Spot Price:+$0.11

    Precious metals ticked up ever so slightly on Tuesday, fueled by more news out of Asia–this time from China. When all was said and done, gold was able to gain about two dollars while silver improved by more than ten cents. Platinum and palladium also had decent days today and were each up by more than 5 dollars towards day’s end.

    PBOC Announcement Causes A Stir

    It’s no secret that the whole of the investing world is focused on the ongoing FOMC meeting, but there was some economic activity taking place elsewhere today. During the overnight hours, it was announced that the People’s Bank of China was increasing its stimulus policies by lending all banks 100 billion yuan over the course of three months. The move made by China’s central bank hasn’t really come as too much of a surprise when you consider the slowing economic progress exhibited by the world’s second-largest economy over the past year or more.

    With more money reportedly being injected into the Chinese economy, precious metals, and all other raw commodities, were given a boost today. After all, China is the world’s largest consumer of raw commodities on an annual basis. It will be interesting to see if, over the coming 6 months or so, this most recent stimulus measure has any noticeably positive impact on Chinese economic growth.

    Attention Fixated on FOMC Meeting

    As has been the case for the past week or more, the attention of the marketplace has been wholly fixated on the Federal Open Market Committee Meeting that is currently ongoing. With so many investors expecting to hear more information with regard to the future of interest rates in the United States, it is no surprise that so much attention is being paid to the FOMC.

    Tomorrow is expected to bring about more information with regard to the actual contents of this week’s meeting. In addition to this, Fed chairperson Janet Yellen is expected to address news media no later than 3:30 PM EST tomorrow afternoon. Today’s forward progress made by precious metals and downward movement of the US Dollar has a lot of people under the impression that perhaps the Fed will keep interest rates at current levels for the foreseeable future.

    In economic news from the United States, a report released today from the US Labor Department indicated that producer prices did not do any moving during the month of August. This news was not all that unexpected after prices were reported as rising by .1% on an annualized basis in July. German investor confidence, on the other hand, has dropped to its lowest point since 2012. It will be interesting to see if the coming weeks and months do anything to change confidence in the German (and EU) economy.


    Looking ahead to tomorrow and the duration of the week, it is clear to see that investors will be preoccupied with the results of the FOMC meeting as well as the results of the upcoming Scottish referendum on independence. These two events are of the utmost to investors and will likely have massive implications on the economic landscape going forward. By the time tomorrow afternoon rolls around, you can expect to see a very busy economic atmosphere as investors from around the world get a chance to digest what the FOMC has to say.

    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.