Gold and silver spot values are down as of the writing of this post, but for the week it seems as though gains are going to be made. Though the gains made by gold and silver spot values will be small, it is encouraging to see metals, for a second consecutive week, finish in a better position than where they started. To be truthful, this week was generally quiet from an economic and geopolitical standpoint, but what economic happenings did take place only acted as a buffer for gold and silver.
Now, as the gold bulls seem to be gaining momentum, it will be interesting to see what takes place over the course of the coming days and weeks. At present, there is so much uncertainty in the marketplace that it seems as though precious metals may be pegged for a new move higher…only time will tell, however.
Economic Data Disappoints on Numerous Levels
Though there wasn’t all that much data making its way to the marketplace, what data did greet investors was mostly negative. From the United States, it was reported that retail sales as well as the producer price index were down for the month of September. Making matters worse for the average investor is the fact that the major US stock markets have played host to a good bit of volatility over the course of the past two weeks.
With volatility at an all-time high in the US and markets around the world, investor uncertainty has done nothing but grow. This is good news for precious metals and is a major contributing factor to the very likely second consecutive week of gains metals are poised to make. So long as stock markets remain as volatile as they have been recently, there is no reason why gold and silver spot values shouldn’t continue to move upward. With that said, however, the US Dollar will be a competing asset-class and may limit some of the buying interest in gold and silver. While it is unclear what the next few weeks have in store for gold and silver, we do know that we are likely in for quite an adventure.