Posted on September 30, 2013
Gold Spot Price Open: $1,352
Gold Spot Price Close: $1,330
Change in Gold Spot Price: -$22
Silver Spot Price Open: $22.06
Silver Spot Price Close: $21.76
Change in Silver Spot Price:-$0.30
Gold and silver lost value on Monday in the midst of ongoing concern over the US budget. When all was said and done, gold lost over 20 dollars while silver lost about 30 cents.
If the government cannot come to a decision regarding the US budget by midnight tonight, the government will be forced into a shutdown. As of the midday point on Monday the US Congress was nowhere closer to reaching an agreement than they were at the beginning of last week. The potential government shutdown has been bearish for most markets, though if a shutdown does actually go into effect, it could be positive for precious metals.
Because the government is facing a halt to its operations, it is likely that gold and silver will see safe-haven demand spike. Tomorrow will show us early signs of whether this thought is true or not.
Some people do not believe gold will see safe-haven demand rise due to the fact that both gold and silver have been acting as raw commodities lately. Seeing as most other commodities are expected to dip in value during a government shutdown, market experts are expecting the same from gold and silver.
Over the weekend President Obama and the newly elected Iranian president spoke on the phone in regards to Iran’s nuclear ambitions and the two countries’ relations going forward. The United States and Iran have been verbally at each others’ throats since the 1980s which is why many are welcoming this change in sentiments. Others still are convinced that any mention of potential peace in the Middle East is nothing but a utopian dream. It is likely that the rest of this week will be dominated by news in regards to the US Budget, so stay tuned.