Gold and Silver Bullion Highlights | 4th July

Gold prices increased yesterday while traders were anticipating the publication of US economic data that could offer new insights into when Federal Reserve interest rates might be reduced. Bullion has been trading within a limited range this week in anticipation of economic data, including nonfarm payrolls on Friday. The numbers could indicate a possible shift by the Fed towards monetary easing.

According to data compiled, exchange-traded funds reduced their gold holdings by 15,679 troy ounces in the most recent trading session, totaling net sales of 4.55 million ounces for the year. Yesterday's spot price was the equivalent of $36.5 million in sales. The amount of gold owned by ETFs decreased by 5.3 percent in the current year to 81 million ounces. Gold went up by 13 percent this year to $2,329.46 per ounce and decreased by 0.1 percent in the most recent session.

State Street's largest precious metals ETF, SPDR Gold Shares, increased its holdings by 184,980 ounces during the latest session. The market value of the fund's 26.8 million ounces totals $62.4 billion. In the most recent trading session, ETFs increased their silver holdings by 313,903 troy ounces, bringing total net sales for the year to 9.56 million ounces. This marked the third consecutive day of growth.

KEY PERSPECTIVE: Gold and silver prices are slightly down on the global stock exchanges today. Their prices are anticipated to fluctuate within a range or slightly increase for the day, as weak US economic data increases the likelihood of the Federal Reserve turning to monetary easing by September. The rise in purchasing demand followed data indicating that the US services industry shrank in June at the quickest rate in four years, as a result of a significant decrease in business operations and diminishing orders.