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    JM Bullion Gold and Silver Market Update (9/24/15)

    Gold Spot Price Open: $1,134

    Gold Spot Price Close: $1,156

    Change in Gold Spot Price: +22

    Silver Spot Price Open: $14.85

    Silver Spot Price Close: $15.21

    Change in Silver Spot Price: +$0.36

    Precious metals rallied on Thursday as stocks in the US pulled back and a bit more uncertainty crept into the global marketplace. When all was said and done, gold managed to gain more than twenty dollars while silver picked up more than 35 cents en route to finishing the day above $15/ounce. Platinum bounced back with gains of more than twenty dollars a day after the metal hit multi-year lows. Palladium also added some value, but once again this metal’s movement was more negligible than anything else.

    Lockhart Comments on Global, US Economies

    According to Atlanta Federal Reserve chairman Dennis Lockhart, investors should worry less about the potential for a global economic slowdown and instead focus on the strength of the US economy. In a statement, Lockhart said that “markets should first look at our characterization in the FOMC statements and in individual speeches of the economy really being on solid ground and performing well.” Even though he is one of the members of the Fed who voted last week to delay interest rate hikes, he is seen as someone who supports rates being hiked this year. With all that being said, however, Lockhart is doing little more than confusing the market and the many investors that make it up.

    The major underlying issue, which many think is slow Chinese economic growth, is really the level of inflation in the United States. Fed policy aims for a steady rate of inflation around 2%, but the most recent readings show that inflation is still well under 1%. If inflation remains as subdued as it has been, there are reasons to believe interest rates will be maintained as well. Gold and silver received a boost today thanks to a new outlook on interest rate hikes that holds that they very well might not be risen until sometime in 2016.

    Durable Goods Orders Down in the United States

    Stocks fell today, prompting even more room for gold and silver to move forward, thanks to a sub-par report on durable goods orders from the US during the month of August. Orders for durable goods dropped by roughly 2% during the month of August, made worse by a downward revision for July that saw an increase in durable goods orders by 1.9%.

    The weekly jobless claims report was also disappointing, as it showed an additional 3,000 people applied for unemployment benefits last week. Though it is disappointing to see the number of jobless claims move upward, economists are interpreting the report as neither a win nor a loss seeing as expectations were for claims to have increased by at least 5,000.

    Janet Yellen is expected to speak later this evening regarding inflation, and you can bet that investors will be tuning in. Tomorrow will see the market first and foremost react to what Janet Yellen has to say regarding inflation, and that will likely have a massive impact on what happens across the global marketplace tomorrow.

    Wrap-Up

    Looking ahead to the last day of the week, it will be intriguing to see if precious metals can capitalize on today’s gains. I think this is going to depend greatly on what Yellen has to say in her prepared speech, but other factors will definitely influence what happens to spot values. As it stands, silver is once again above $15/ounce and it would be extremely encouraging if the metal can finish the week in the same position or higher. As we look ahead to the month of October, you can rest-assured knowing that interest rate speculation is just about to pick right back up.

    Disclaimer: 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.

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