Gold Spot Price Open: $1,121

Gold Spot Price Close: $1,119

Change in Gold Spot Price: -$2

Silver Spot Price Open: $15.38

Silver Spot Price Close: $14.92

Change in Silver Spot Price: -$0.46

Precious metals ticked lower on Tuesday ahead of what is shaping up to be a closely-watched conclusion to August’s FOMC meeting. When all was said and done today, gold lost just about 2 dollars while silver moved downward by somewhere in the range of 40 to 50 cents. Platinum and palladium also finished the day down, with palladium losing closer to twenty dollars today alone.

FOMC Meeting Kicks Off–Post-Meeting Statement Awaited

The latest installment of the Federal Open Market Committee’s monthly meetings is scheduled to take place this week, and the market is already paying close attention. Before we can hear what Janet Yellen and co. have to say about the US economy, investors the world over will first be dealt the minutes from July’s FOMC meeting. At this point, no one is expecting anything too earth-shattering from last month’s minutes, but they will be hawked over nonetheless. This is especially true seeing as we have recently heard high-ranking members of the Fed express doubts with regard to the feasibility of a September interest rate hike.

As it stands, the market is still convinced that September is when we will see rates hiked for the first time in more than a half decade, but recent developments overseas very well might have thrown that plan by the wayside. Seeing as China actively worked to devalue its own currency, the Yuan, last week, the general and growing consensus is that we may have to wait a bit longer before rates in the US are hiked. By the time this week’s FOMC meeting wraps up, however, the hope is that a bit more light will be shed on what is to be expected with regard to the future of interest rates in the United States.

Now, there are some who think rates may stay put until December, but that much remains to be seen.

Upbeat Housing Data Works Against Gold, Silver

After a bit of a rocky last few weeks, the Dollar gained some traction on Tuesday on the back of a Commerce Department report highlighting July housing starts that came back the best in 8 years. Construction of single-family homes led the charge as the housing market in the US appears to be thriving. Unlike what was the case back in 2008, the housing market in the US is on the up and up and, to many, this is a sign that the wider US economy is performing quite well.

Recent data from the US, including reports on retail sales, payrolls data, and manufacturing have all been on the up and up which is only adding fuel to the fire that is the belief that rates will be risen in September. At this point it is tough to say what will really happen come September’s FOMC meeting, because it seems as though the market is split, with some thinking rates will be risen in the near future, and other thinking we have to wait until December to see interest rates altered.

Wrap-Up

All in all, today offered up about the same as what we have been dealing with recently. You will notice that the market is currently obsessing over US economic data, and with interest rate hikes being called into the spotlight now more than ever, this makes perfect sense. As we head into tomorrow and the rest of the week, the eyes and ears of the investing world will be almost wholly fixated on what members of the Fed have to say about the state of both the US and global economies.