Gold: $1,288.95 9.00
Silver: $17.16 0.11
0
November 15th Weekly Silver Market Update
Article By: Kyle Wanchalk on November 15th, 2013

Gold and silver had a lackluster week as there were few economic news stories able to move gold or silver either way. With that being said, gold and silver did manage one day of respite this week, though the gains made hardly make up for the string of losses posted by gold and silver over the course of the past 10 days or so.

Some weaker than expected EU GDP data gave the US Dollar more strength which translated into heavy downward pressure being placed on precious metals.

Surprising Statements

Janet Yellen may be a name you are unfamiliar with now, but that might change in the near future. She is being touted as the favorite to replace Ben Bernanke as chairperson of the Federal Reserve and because of that she was scheduled to speak in front of the US Senate Banking Committee this week. In her prepared speech she held firmly to the belief that Quantitative Easing needs to be retained for the foreseeable future. Ms. Yellen made it clear that economic growth is not strong enough nor is the unemployment rate low enough to merit a reduction of the easy monetary policy of QE.

A day later, when being question by US senators, Ms. Yellen maintained her firm stance with regard to the retention of Quantitative Easing. Her remarks were seen as dovish by precious metals investors and in turn gave gold and silver their only day of gains this week, on Thursday.

As of now a majority of investors are split down the middle when it comes to their opinion on what should or shouldn’t be done to Quantitative Easing. Some think that this December’s FOMC meeting will yield the tapering we have been expecting for months now, while others think that the FOMC will leave monetary policy untouched until the middle of next year, at the earliest.

Weak EU GDP

The only other major news story of the week regarded the release of the EU’s annualized 3rd quarter GDP data. The report showed that while GDP in the EU grew from last year’s 3rd quarter, the margin of growth was disappointing. On an annualized basis, EU GDP improved by only .4%.

This news made the ECB’s decision to cut the EU’s key lending rate look very smart. Something else worth mentioning is the fact that many experts believe the cutting of Europe’s lending rate has given the Federal Reserve more of a time cushion before they have to make any sort of change to monetary policy.