Gold Spot Price Open: $1,371
Gold Spot Price Close: $1,327
Change in Gold Spot Price: -$44
Silver Spot Price Open: $23.23
Silver Spot Price Close: $21.85
Change in Silver Spot Price:-$1.38
Gold and silver gave up most of the gains they made yesterday on the final day of what has been a turbulent week. At the end of the day gold lost about 44 dollars while silver lost nearly 1 dollar and 40 cents.
Today’s losses can be most directly attributed to profit-taking by investors who, in all likelihood, were surprised to see their metals make gains on Wednesday and Thursday. Prior to this week, most investors and market watchers were as positive as they could be that the Federal Reserve would reduce their current monetary policy of Quantitative Easing. When their monthly policy meeting was finished and the dust settled, the Fed made no changes to QE and we end this week with the same monetary policy as we have experienced for quite some time now.
Asian markets were quieter today as China celebrated a national holiday.
India shocked investors by announcing that they would increase their key interest rate by .25%. This interest rate hike is to fight off inflation in an attempt to help the ailing Rupee.
Investors across the globe are still digesting the Fed’s inaction and will reset on Monday with a completely different attitude about the trading atmosphere in the US. In other news, the entire German population will be anxiously awaiting Sunday’s election results. It is widely held that current Chancellor Angela Merkel will win a third stint as Chancellor, though we will find out for sure in a few days. With that being said, it is unlikely that the German election will have any real impact on the precious metals market.
Obama and his administration still need to tackle upcoming budget and debt issues, and the clock is ticking. If they do not figure things out soon, the US government could be forced into a shut-down of sorts; a situation no one wants to see.
