Gold & Silver Report 2 Feb 2015

Gold was initially boosted by uncertainty in the Eurozone as the leftist Greek Syriza party came to power. However the metal saw continual losses as markets stablised and after the US Fed announced it was on track to raise interest rates this year. It turned around with a two-week high thanks to speculation over the implications of cooling global economic growth

Price and charts snapshot:

Commodity Units Price

Change

% Change

COMEX Gold (Apr 15 delivery) USD/t oz. $USD1,278.50 ($AUD1,647.66)

+23.90

+1.90%

Gold Spot USD/t oz. $USD1,283.75 ($AUD1,654.42)

-0.04

-0.00%

COMEX Silver (Mar 15 delivery) USD/t oz. $USD17.21 ($AUD22.18)

+0.44

+2.59%

US Dollar Spot USD/t oz. $USD17.25 ($AUD22.23)

-0.00

-0.01%

 

On Monday fresh concerns about the eurozone resurfaced after Greece’s far-left Syriza party swept to power and opposed the terms of the nation’s international bailout conditions. Gold also fell as traders cashed in gains from last week’s five-month highs[1]. Gold fell for its third session in a row on Tuesday, hurt by the stronger US dollar and equities[2]. The precious metal then extended losses on Wednesday while the market anticipated an upcoming US Federal Reserve policy meeting. On Thursday the Reserve signaled it was still on track to lift interest rates this year, causing gold prices to tumble over 2% to a two-week low while silver saw its biggest decline in 1.5 years. On Friday, gold futures rose the most in two weeks amid speculation that weaker foreign economies will drag on American growth prompted the Federal Reserve to wait longer before raising interest rates[3].

This week overall, the yellow metal dropped 1.1%. For silver the price has jumped 10%, the most since June last year[4]. Gold is up 6.5% so far this month, boosted by European uncertainty after the Swiss National Bank scrapped the franc’s peg limit and the European Central Bank said it would pump billions into the economy.

The Greek election set leftist leader Alexis Tsipras to become prime minister of a government openly opposed to bailout conditions, the resulting uncertainty was initially a supporting factor for gold.

However, the price appeared to ease over the week as sellers capitalised on gains from last week and as global equities strengthened, reflecting the view that European markets had weathered Greece’s election outcome without much disruption[5]. Gold’s rise to its highest price since mid-August last week may have also overstretched prices, particularly as as the uncertainty surrounding the Greek election cleared. ABN Amro analyst Georgette Boele said: “With the event risk out of the way, now that everyone knows what’s going on in Greece, sentiment has calmed somewhat… The recovery in sentiment is hurting gold prices somewhat.”[6]

The cooling of global economic growth which slowed sharply in the fourth quarter of last year to a modest 2.6% has raised hopes the US recovery finally was slowing to normal or at least be ‘dragged’ somewhat by global growth, and this sentiment appeared to help support the precious metal again at the end of the week.

For the week ahead, investors will be watching US gross domestic product data due on Friday for more clues on the strength of the economy.

Author Lisa Casagrande | https://www.goldbullionaustralia.com.au


[1] http://www.reuters.com/article/2015/01/26/markets-precious-idUSL4N0V538O20150126

[2] http://www.reuters.com/article/2015/01/27/markets-precious-idUSL4N0V606V20150127

[3] http://www.bloomberg.com/news/articles/2015-01-30/gold-climbs-from-lowest-level-in-two-weeks-paring-weekly-drop

[4] http://www.bloomberg.com/news/articles/2015-01-30/gold-climbs-from-lowest-level-in-two-weeks-paring-weekly-drop

[5] http://www.reuters.com/article/2015/01/27/markets-precious-idUSL4N0V606V20150127

[6] http://www.reuters.com/article/2015/01/26/markets-precious-idUSL4N0V538O20150126

 

Keep informed of live spot prices, news and specials.

If you would like to stay informed about up to the minute pricing, market news and specials, subscribe here.

Live Prices

Gold

Silver

Gold

2,531.81/oz

Silver

29.44/oz

Gold

2,531.81

Silver

29.44

Latest Post

Where Are We Headed: Inflation, Asset Markets, Currencies, Commodities & Precious Metals

China’s Imports Shift Platinum Into A Global Deficit, Presenting A Conundrum To The Industry

THE CRUNCH IS COMING FOR SOUTH AFRICAN PLATINUM MINES, BY WAY OF WAGE DEMANDS

Interest Rates Rising: A Very Bullish Signal For Precious Metals

IMMENSE SEASONAL BUYING OPPORTUNITY IN GOLD, SILVER & PLATINUM IS UPON US

Mining Platinum Group Metals – Part 2

South African Platinum Mine Supply in Decline as Demand Gains Significant Traction – Part 1

Auctus Metal Portfolio Overview – 1 November 2021

UK Hydrogen Strategy 2021 Platinum Long-Term Demand Moves Ever Higher

WHY HAVE PRECIOUS METALS UNDERPERFORMED IN 2021?

MASSIVE EXPLOSION AT ESKOM’S NEW POWER UNIT ‘MEDUPI’

Understanding Why Precious Metals Are Undervalued

The Impact of South Africa’s energy crisis on PGM mine supply

CYCLICAL TRENDS IN PRECIOUS METALS

WHY METAL FALLS?

Auctus Metal Portfolio Overview – 1 June 2021

Price Volatility & Correction In Platinum Group Metals ( PGM’S ) in May 2021

A CASE FOR PLATINUM

THE SLINGSHOT SETUP IN PRECIOUS METALS

PLatinum (Pt) UPDATE

PRICE FALLS IN METALS

The Hare and The Tortoise Story

Immense Seasonal Buying Opportunity in Gold, Silver & Platinum Is Upon Us

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 3

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 2

The impact of the COVID-19 pandemic on South African PGM supply, on global supply and ultimately on the price of platinum, palladium and rhodium. – Part 1

AUCTUS Company Portfolio Models Overview as of 1st June 2020

Gold and precious metals are among the safest investment assets during a global crisis

Investing in and Retaining a precious metal portfolio during the COVID-19 pandemic

How Cheap is Gold as of April 2020

Anglo Platinum

Platinum – Supply and Demand

Platinum price to rise as “climate change” pressure gains traction

David Davis

Auctus Metals Breaks+50% Annual Net Returns for Year 2019

Big Profits in Buying Gold, Silver & Platinum in December

What’s the difference between and optimist and a pessimist?

Our Clients Portfolio Performance Spectacular Chart Performance – 3 charts

Silver Technical Picture Price Outlook

China Devalues their Currency

Palladium – the quiet achiever of the Precious Metals Portfolio

Diversification within Precious metals – The Potential is Incredibly Compelling

Why Silver is seriously Bearish

Forecasts are now becoming mainstream plus platinum

Historical Precedent in Silver & Gold

The perfect storm slowly starts to hit and can no longer be ignored

A Momentum Lead Capitulation in Platinum, A Major Triple Bottom Develops?

Black swans darkening the sunlight out from view

WHAT IS IT ABOUT PGM’s (Platinum Group Metals)?

Have you considered Rhodium?

Historical Investment Opportunity Presents Itself

Bullion Banks ARE Now the Most Bullish on Silver in Decades!

A Confluence of Events in Silver Are Coming Together

A Confluence of Events Leading to Silver Price Rise

We are currently at a 1 in 5-year event

DEBT CRISIS, CRYTOCURRENCY, PROPERTY AND A MONEY TSUNAMI

First Bullion Bulletin – Update with David Mitchell

Porsche Gold Rush: Special operation for Porsche on the streets of London

METALS, STOCKS & BONDS

Happy New Year – what is happening at GBA and precious metal investing

HOLIDAY TRADING

NOT ALL THAT GLITTERS IS GOLD

This Week’s Specials

PERTH MINT YEAR OF THE DOG 2018 GOLD & SILVER BULLION COINS

The Biggest Opportunity in Precious Metals Since Late 2015, and the Last Chance at These Prices ?

Please tell us what you think of the new GBA website!

X
2,531.81
29.44