Gold Spot Price Open: $1,293

Gold Spot Price Close: $1,293

Change in Gold Spot Price: NO CHANGE

Silver Spot Price Open: $18.60

Silver Spot Price Close: $18.25

Change in Silver Spot Price: -$0.35

Precious metals finished the day mixed again, but seeing as spot values have not been moving too dramatically it is clear to see that risk-aversion is still rampant. When all was said and done, gold lost about a dollar while silver was down by 35 cents. Platinum and palladium both fell on the day, with platinum losing about 9 dollars while palladium lost in upwards of 15.

Gold, Silver Consolidate After Recent Gains

For the better part of the past 4 weeks, precious metals have been gaining at seemingly every turn. At first, gains were initiated due to beliefs that another round of interest rate hikes might be a bit further off than originally anticipated. For many, the June FOMC meeting was what was being pointed to as the next time the Fed was going to hike rates. Shortly after that belief was established, however, commentary from the Fed and elsewhere began to shift those expectations. These shifting expectations paved the way for metals to begin gaining some of the ground lost towards the end of the Winter.

In more recent weeks, we have seen geopolitics come into play from quite a few different angles. Geopolitics have decided to hang around, and this has meant for a lot of action for precious metals. Though spot values have been on the up and up in recent weeks, the sideways to downward action we are seeing this week has less to do with a changing of the market’s focus, and more to do with investors cashing in on recent gains. This cashing in is pushing spot values slightly lower. Despite this, we feel safe in saying that precious metals bulls have the near-term technical advantage and will continuing laying claim to that so long as tensions in Asia and the Middle East are as high as they have been.

Though there have been no fresh developments out of North Korea so far this week, that situation is still a very concerning one for investors the world over.

European News Dealt

Something that surprised investors today was the fact that new UK PM Theresa May announced that general elections will be held this upcoming June. Coming not even a month after a Prime Minister spokesperson commented that there would definitely not be any snap elections held, we today received word that that is exactly what is going to happen come June.

In addition to this, investors and French citizens alike are gearing up for the first round of presidential voting, which is to take place this upcoming weekend. As it stands right now, the race is very close. People the world over are so concerned with French elections due to the potential for a far right-wing victor. At least one candidate has made it very clear that, if elected, France will hold an EU referendum much like that which was held in the UK. The uncertainty with regard to that, and the French election itself, is something that has been lending support to precious metals.

As we continue to be met with little to no fresh economic data, this week will see the attention of the marketplace slowly but surely turn to France and the UK, where reactions regarding the general election decision are still streaming in.

Wrap-Up

Though we were not dealt any markets-moving economic data on Tuesday, there was still plenty to talk about. This almost always seems to be the case when geopolitics are in the news. As we look ahead to Wednesday and the rest of the week, you can expect much of the same. The focus on geopolitics will remain through the end of the week and this will continue to support metals. It is also worth mentioning that, for yet another day, the USD Index is slightly lower.