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    JM Bullion Gold and Silver Market Update (9/28/15)

    Gold Spot Price Open: $1,147

    Gold Spot Price Close: $1,134

    Change in Gold Spot Price: -$13

    Silver Spot Price Open: $15.17

    Silver Spot Price Close: $14.61

    Change in Silver Spot Price: -$0.56

    Precious metals took a big hit to start of the last few days of September trading and are reeling now that more investors are confident rates will be hiked sooner rather than later. When all was said and done on Monday, gold lost more than ten dollars while silver declined by more than 50 cents, dropping beneath the $15 threshold. Platinum lost another 25 dollars on the day while the downward posture of most other precious metals seems to be weighing on palladium as well.

    US Consumer Spending Upticks During August

    Consumer spending in August was reported as having grown at a healthy rate while income growth slowed after a massive leap forward in July. August saw consumer spending jump upward by .4% according to the Labor Department. For both July and August, the Labor Dept. is attributing healthy consumer spending growth to the increased purchasing of big-ticket items like motor vehicles. Consumer spending is a massively important statistic, and after seeing both July and August put forth great growth figures, many economists are convinced that the rest of the year will also show healthy growth despite a global economic slowdown of sorts.

    Thanks to falling energy prices, US households have more disposable income that they are not shying away from using on items like cars, houses, and home renovations. In addition to all of this, it was also reported today that personal income took another leap forward during August, mostly thanks to rising wages and salaries.

    If you can recall, last Friday saw the US government announce that economic growth during the April to June quarter came in at about 3.9%. Considering the first quarter of the year saw GDP growth under 1%, this figure was encouraging to say the least. Seeing as consumer spending makes up so much of the US economy, it is no surprise that GDP data and consumer spending data seem to be moving hand in hand.

    Gold, Metals Fall on Upbeat Outlook on US Dollar Growth

    It has been no secret that the US Dollar has been growing at a nice rate for much of this year. While the greenback has done good up to now, most experts feel as though that the good times are likely to continue rolling for the US Dollar. Because of this upbeat outlook regarding the USD, investors simply do not feel the need to safeguard their wealth with precious metals investments. Thanks to the way in which things opened up this week, gold and silver gave back most of the gains that were realized last week.

    Across the globe, major world stock markets are continuing to feel pressure after yet another round of poor Chinese economic data, but the focus has once again almost wholly turned to the Fed and their potential actions this month. The market has continually grown convinced that interest rate hikes are set to be put in motion this year, and with recent economic data from the US coming back as strongly as it has, that belief is only gaining increased strength with each passing day. Some members of the Fed are expected to make public remarks this week, so I am sure the speculation will push forward at full speed.

    Wrap-Up

    In summation, today marked a fairly awful start to the week for gold and silver spot values. When it comes down to it, neither metal is able to withstand the growing belief that rates will be hiked in the near future. Further, even if one does not believe rate hikes are just around the corner, it is hard to bet against the growing strength of the US economy. Even without the thought of raised rates, investors are confident enough in their own personal financial standing that they do not feel as compelled to acquire precious metals as they did, say, at the onset of the 2008 financial crisis.

    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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