Gold Spot Price Open: $1,469

Gold Spot Price Close: $1,453

Change in Gold Spot Price:-$16

Silver Spot Price Open: $24.00

Silver Spot Price Close: $23.96

Change in Silver Spot Price:-$0.04

Gold fell by a decent amount while silver stayed about stagnant on a day where there was more news about interest rate cutting. When all was said and done gold was down about 16 dollars while silver fell to the tune of about 4 pennies.

In overnight news there was some pressure put on gold as the central bank of Australia announced that it will be cutting interest rates to record lows. Interest rates were officially cut to 2.75% with the reason behind the cut being an effort to sustain a functional economy as well as weaken the Australian currency. Australia joins a long list of nations, which includes the US and Japan, who are pursuing easy monetary policy in light of less than suitable economic conditions. In the long run it is expected that weaker Australian currency will be good for gold, but in the immediate aftermath it caused losses today.

While Japanese traders and investors took the entirety of last week off in order to celebrate the Golden Week holiday, it did not cause stock markets in Japan to skip even a single beat. In fact, on the first day of trading since being off for 6 straight days the Japanese stock market hit multi-year highs. This kind of result was unanticipated but warmly welcomed by all those fortunate enough to have benefited from it. This is yet another reason behind why silver and gold, but especially gold, did not have a good day on Tuesday.

Right from the start of the day gold was down and it never recovered. Though today’s losses are nothing too tragic, many fear that they have set the tone for the following three days.