Gold: Gold, like the rest of the metals, had a difficult week. Gold opened high at $1269.30 USD, and then steadily decreased across the week to close at $1229.30 USD (3.2% decrease).
Silver: Silver opened at $17.24 USD and closed at $16.35 USD (5.2% decrease).
Platinum: Platinum opened at $948.30 USD this week and closed for a loss at $913.15 USD (3.8% decrease).
Palladium: Platinum opened at $826.00 USD this week, decreased in value until Thursday and recovered a little to close for a loss at $814.75 USD (1.4% decrease).
Some economists warn that the “Sell in May and Go Away” adage will not work for gold. Because gold’s fundamentals remain intact, holding on to gold is not only safe, it may also be profitable!
The most recent employment data seem to be keeping the Fed on the trajectory for another rate hike.
The recent tumble in oil prices seems to be affecting other commodities, like gold and silver.
Personal Incomes and Outlays (May 1, 8:30 AM ET): The personal incomes and outlays report is a measure of household income and expenditures. Personal incomes came as no surprize to economists. It was predicted that incomes would rise 0.3% over last month, and the actual increase was 0.2%. The PCE Price Index was predicted to decrease by 0.1%, and the actual value was 0.2%.
ISM Mfg Index (May 1, 10:00 AM ET): This is an index that returns metrics about the productivity in manufacturing trends. While the metric was predicted to return an index of 56.1, this manufacturing index was actually 54.8; suggesting a greater-than-expected slowing in the manufacturing sector of the US Economy.
EIA Petroleum Status Report (May 3, 10:30 AM ET): The EIA Petroleum Status Report is a measure of Crude Oil, Gasoline, and Distillates inventories. Because the petroleum industry is foundational in the US economy, movement in this index is used to understand the general economic health and trajectory. Crude and distillate inventories both increased this week, while gasoline inventories increased. While the data clearly show movement in inventories, the interpretation of these data remains ambiguous.
FOMC Meeting Announcement (May 3, 2:00 PM ET): The Federal Open Markets Committee met to, in part, discuss the Fed’s plans to increase the tax rate between 0.75 to 1.00% in May. While there were some signs in Q1 of economic slowing, Q2 data seem to support the Fed’s opinion that the economy can sustain an interest rate hike in May.
International Trade (May 4, 8:30 AM ET): The International Trade index is a measure of the relationship between imports and exports. A negative trade balance favors importation, and a positive favors exportation. The trade balance was predicted to increase to $-44.5, but actually returned a greater decrease than predicted of $-43.7. This drop in trade balance reflects the recent decrease in imports.
Jobless Claims (May 4, 8:30 AM ET): The number of claims for unemployment benefits was considerably lower this week than predicted. It was expected that the number of new claims would decrease by 11,000, but actually decreased by 19,000.
Employment Situation (May 5, 8:30 AM ET): The employment situation looks bright in the US. Nonfarm payrolls, private payrolls, and average hourly warnings all increased, while the unemployment rate decreased.
EIA Petroleum Status Report (May 10, 10:30 AM ET): This is a measure of the change in domestic inventories of crude oil, gasoline, and distillates as a product of domestic production or importation. The price of oil, which is in part a product of inventories, has had a significant impact on the price of other commodities.
Jobless Claims (May 11, 8:30 AM ET): This is a weekly measure of the change in employment situations. Recent data have suggested a strong employment situation for the US.
Consumer Price Index (May 12, 8:30 AM ET): This is an index used to measure the rate of inflation, and is calculated from the change in a fixed basket of goods and services.
Retail Sales (May 12, 8:30 AM ET): This is used as an index of consumer sentiment and is calculated from the total receipts from retail stores and food services. Consumer sentiment can greatly impact economic health.
Precious metals prices are falling, and we may not see them this low for some time. Take advantage of our sale on the 2016 Silver Eagle AND the drop in silver before our limited supply runs out!