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Gold, Silver See Last Week’s Gains Disappear As New Economic Data Emerges

Last week’s wildly fluctuating gold and silver prices appears to be continuing this week with a sharp Monday morning drop for both metals, per the COMEX division of the New York Mercantile Exchange (NYMEX). Gold opened the trading session by falling $15 to settle at $1433 per ounce, while silver responded to the opening bell with a $0.22 drop, leaving the white metal at $23.65 by 5pm EST.

A slew of economic data and a fast-moving (in both directions) dollar moved gold and silver prices last week, and the same factors appear to be at work in today’s market. The U.S. Commerce Department announced that retail sales in April were higher than expected. The news caused some selling of gold and silver but the majority of investors decided to hold until more economic information becomes available later this week. The data scheduled to be released this week includes the consumer confidence report, the latest consumer price index as well as a report on producer prices.

Some analysts, including Barclays Capital precious metals strategist Suki Cooper, have said that gold could fall further. “In our view, there is greater risk of physical demand slowing further, rather than sizable ETP inflows, thus posing downside risk to prices in the near term,” Cooper said. Cooper’s projection was echoed by many in the gold market, who feel that household investors are approaching their maximum gold buying limit while institutional buyers and others interested in derivatives are still apprehensive about buying back into the market. Track gold and silver prices and trends around-the-clock with the Gold Silver Daily Market Update, only at GoldSilver.org.

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