Silver and gold both had less than stellar weeks this week, but these ending numbers more or less replicate how precious metals have acted the past few weeks. The US economy is performing so well that it is really hard for metals to gain a lasting foothold that it could improve upon.
What Recession?
If you live in the United States, you are more than well aware of the fact that the last few years have not been anything to brag about as far as the economy is concerned. The main topics were the rising unemployment rate, falling production levels, and diving stocks, but all that is starting to turn around. Now, unemployment levels are in the news because they are falling, and stocks are making headlines due to their recent impressive runs.
The fact of the matter is that US is really starting to turn things around, which is good for the average American, but not so good for precious metals investors. Despite this, metals have been able to keep their head above water despite all economic indicators showing that the opposite should happen. It will be interesting to see if US stocks and the USD will be able to maintain their recent upswing.
Signs of hope in Europe
A bond auction in Germany earlier this week produced better than expected yields, which is contrary to what most people expected. This is just one small, isolated event, but sometimes all it takes is something small to propel a larger push forward.
All eyes will be on Italy as a bond auction there in the coming week will have major implications for how investors are feeling about the country and its newly elected president.
The Week Ahead
The upcoming week will focus on the US to see if their economy will continue to push forward or if it will slow down. Chinese manufacturing output and employment levels will also likely be a focus next week as both have been disappointing lately.
Weekly Shift
At the end of the week, gold had moved from $1,579 on Monday to $1,593. Silver performed disappointingly this week and it moved from $29.07 to $28.85.