As United States precious metals investors returned to active trading following the long Labor Day weekend, they found a bullish bullion market. Gold jumped some $20 crossing the $1,550 mark and hitting $1,550.50 at one point on Tuesday, September 3. It settled later in the afternoon closer to $1,545. And it’s not just gold that ramped up hopes yesterday. Silver climbed around 80 cents and made a run for $20, closing the day at around $19.35. The question is, what will today bring?
There’s always the chance of a slight downward adjustment, as we’ve often seen follow significant one-day price increases. But the overall mood of the precious metals market these days seems to be up, up, and away, as both silver and gold have enjoyed remarkable gains in the past few months. Since Memorial Day weekend in late May, gold has climbed about $250 from approximately $1,290 per ounce. Silver, meanwhile, over that same period has posted an impressive $5 climb from $14.40.
The narrative behind the conditions in the bullion market is largely driven by the unsettled state of affairs for the United States economy. The stock market remains weak and long-term outlooks suggest a mixed bag of results, with fears of a mild recession looming ahead. This, along with continued sociopolitical pressures in the Middle East and concerns among some traders about the implications of the Brexit matter in Great Britain — a nation on the verge of leaving the European Union, are all factoring into the bullion market. What does the week ahead bring? Stay tuned…
