Daily Spot Price Update 1/17/2017

Metal Open Close Change
Gold $1209.46 $1217.00 + $7.54
Silver $16.92 $17.22 + $0.30
Platinum $992.75 $983.70 – $9.05
Palladium $750.05 $752.75 + $2.70

Summary

Platinum took a dip on 1/17, while all other metals increased.

Growing Demand for Gold

Gold has increased in value nearly every day this year. Granted, this year has only just begun, but people are realizing that a Trump presidency could have some extreme effects on the financial market. The dollar, when stacked against ten other strong currencies, has fallen 1.4 percent in 2017 alone. Meanwhile gold has risen by 5.7 percent.

Cash Crisis in India

Ever since Indian Prime Minister Narendra Modi banned certain denominations of rupee notes (which amounted to about half of the country’s circulated cash), jewelry retailers have been thrown into chaos. India is the world’s second-largest gold-buying country, following only China. The country’s jewelry industry runs mostly on cash, with many stores unable to accept credit cards. However, the currency changes have left many consumers without extra cash. This caused the demand for gold in India to drop to a seven-year low in 2016. The goal of the currency changes was to combat corruption, black market sales, and tax evasion. However, the effects on the economy may be more complex than expected.

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