Gold and silver spot values edged higher to close out what has proven to be yet another positive week for metals. Despite there being only limited amount of economic data on the slate for this week, precious metals were able to retain recent momentum and close the week a bit higher than where they opened. Silver performed particularly well this week and has finally eclipsed the $21/ounce threshold for the first time in a few months.
One of the biggest factors providing the precious metals market with a boost has been the fact that the USD index is weakening and has been over the course of the past few weeks. Barely a month ago, the index saw the Dollar at $81.15+, but now the greenback is trading in a modest range between $80.00 and $80.20. Interestingly, however, the US equity market is performing well despite the continued devaluation of the Dollar. This is, perhaps, providing the spot values of gold and silver with a good bit of resistance recently.
Quiet Week Yields Little Economic Data and Even Less Price Action
With the exception of a handful of economic reports, this week has been generally quiet and free of any major price action. The biggest report of the week, the United States’ first quarter GDP report, came in well short of market expectations and, if anything, acted as an underlying bullish factor for gold and silver spot values. Other than that piece of data, however, the 5-day trading session was quiet and lacking any noteworthy happenings.
The ongoing civil war in Iraq remains on the minds of investors from all over the world, but it remained mostly away from the headlines this week. Despite reports of violence at seemingly every turn, the market has done a good job of avoiding the topic this week. Still, as the ISIS rebels capture more expansive parts of northern Iraq, it is unlikely that the market will continue to avoid paying attention. As of now, the Iraqi civil war has done a good job of providing the precious metals with a lift via increased safe-haven interest. It will be interesting to see how the situation affects metals throughout next week as it is expected to get much worse before it gets any better.