March 01, 2017 2 min read
March 1, 2017
Gold Spot Price Open: $1,260
Gold Spot Price Close: $1,259
Change in Gold Spot Price: -$1
Silver Spot Price Open: $18.50
Silver Spot Price Close: $18.39
Change in Silver Spot Price: -$0.11
Wednesday saw gold’s spot price lose about 1 dollar while silver lost around 10 cents. Thanks to several statements this week regarding economic conditions and rate increases, precious metals will likely see a rate hike that was not expected to come for quite some time, according to jmbullion.com.
While President Trump’s first address to Congress was expected to involve some details involving his fiscal policy, he failed to elaborate on how tax reform and infrastructure investments will be paid for or what they will cost. However, William Dudley, chair of the New York Federal Reserve, and John Williams, chair of the San Francisco Federal Reserve expressed similar opinions recently about the idea that they see no reason why, given the continual improvement of economic conditions, rates should not be increased. The impending increases will likely cause spot values of precious metals to take a hit. Much of the timeline for these rate increases depends upon the next FOMC meeting and decisions made therein.
Today’s data reported a decrease in consumer spending; however, the overall economy appears to be going strong through the first quarter of the year. Although January’s single-month inflation increase was the highest increase in 4 years, consumer spending still saw an increase of .2%. Due in part to trust in President Trump’s ability to improve the economy, consumer confidence has reportedly soared to levels not seen in 15 years.
With economic changes on the horizon and rate increases inevitable, investors in gold and silver can benefit if they act at the right times. Once rates go up, precious metals may see a downturn, but now is a great time to invest in or sell gold and silver as prices and rates are reasonable.