Gold and silver are trading slightly lower on Friday but will be happy about their positions to end the week. As opposed to the last few 5-day trading sessions, gold and silver were able to post gains and end the weekend above key resistance levels. Currently, gold is above the $1,300 threshold while silver is sitting just barely over $20/ounce.
There was a decent bit of economic data due out this week, but none was more highly anticipated than the midweek release of the latest FOMC minutes from the March policy meeting. After recent remarks from senior members of the Fed caused investors to believe that interest rates would be risen as early as this time next year, many hoped the minutes would be able to clear matters up. Unfortunately, however, the minutes offered very little in the way of reliable insight into just when the Fed will raise interest rates. As it stands currently, investors are a bit calmer and are of the general opinion that it will be more than a year before interest rates are boosted.
Chinese Exports Data Disappoints For A Second Consecutive Month
After taking into consideration just how poorly the Chinese economy has been performing as of late, it really shouldn’t come as much of a surprise that exports were on the decline in March for a second consecutive month. Officially, exports from China to other nations have fallen by nearly 7% in March, adding to a decline of nearly 20% in February.
The downbeat Chinese exports data only works to add to the growing belief that the Chinese central bank will pursue some sort of monetary stimulus measures in order to combat such weak economic performance. When speaking to media this week, senior Chinese officials made it clear that while they will consider stimulus if matters call for it, but are not going to be rushed into taking any action. The Chinese economy is of vital importance to precious metals investors because China is the largest consumer of precious metals on an annual basis.
Investors are also beginning to pay more attention to the crisis in Ukraine. There have been a number of pro-Russian demonstrations over the last week or so which is only working to increase the divide among the various ethnic backgrounds that populate Ukraine. There has not been too much violence as a result of these demonstrations, but as is always the case with the crisis in Ukraine that stands the possibility of changing in the blink of an eye.