Market Update: Gold and Silver
With an uptick in both the U.S. dollar and stocks today, precious metals saw falling numbers. Gold spot price lost $2, while Silver lost 7 cents. Despite the loss, both metals are still hovering above important price points. Gold remains over $1,200 per ounce and Silver is selling above $17 per ounce.
According to jmbullion.com, several unfolding events will play negatively or positively into the near future of precious metals. First, the release today of monthly U.S. Institute of Supply Management data indicated a healthy increase in economic growth between December and January, with one of the highest ratings we’ve seen recently. Though this is overall a positive statistic, it was likely detrimental to gold and silver spot prices today.
Also affecting gold and silver prices today was the release of the ADP employment report which indicated an increase of over 200,000 private-sector jobs between December and January, a monstrous increase that assuredly commanded the attention of investors and could have negative implications for metals, especially if the non-farms employment data released this Friday matches that of the increase represented in today’s data.
On a positive note, the Federal Open Market Committee made a statement today after concluding its January meeting. While the committee acknowledged that our economy is on the upswing and expanding steadily, they do not foresee a change in interest rates coming soon. This is good news for gold and silver, as it provides reassurance to investors that rates will remain steady and it will be wise to invest in precious metals. Though it is believed that rates will increase at some point in 2017, interest rates are currently reasonable, so now would be a great time to invest in precious metals if you are thinking about doing so.
Gold Spot Price Open: $1,215
Gold Spot Price Close: $1,213
Change in Gold Spot Price: -$2
Silver Spot Price Open: $17.59
Silver Spot Price Close: $17.52
Change in Silver Spot Price: -$0.07