Gold and silver spot values are edging higher to close out the week, but are mostly pausing after yesterday’s gains. This week has proven to be quiet from an economic standpoint and, as such, we have not see too much in the way of markets-moving economic or geopolitical data. There have been a rising number of reports streaming in with regard to violence in Iraq, and these early stories have done well to bring back safe-haven demand to the market for the first time in a few weeks.
Gold and silver spot values are currently at their highest points in nearly a month, but are still far below the level we were at 5 or 6 weeks ago. If next week brings about the increased amount of economic data that it is expected to, we will more than likely see spot values move a bit more than they were able to this week.
Violence In Iraq Increases, Civil War Seems Inevitable
Since late last week, the world’s major news outlets have been reporting an outbreak of violence in the northern parts of Iraq. The Islamic State of Iraq and Syria, also known as ISIS, has been making their way south and seizing control of multiple towns along the way. The group is essentially a conglomerate of a bunch of smaller terrorist cells and has been changing shapes and growing throughout the duration of the civil war in Syria. Now, with bigger ambition, ISIS is looking to take control of even more parts of Iraq. Currently, ISIS forces are greatly outnumbering Iraqi security forces and, quite frankly, taking over town after town with relative ease.
Now, it has become clear that Iraq’s preexistent security forces are not enough to combat this militant group and are in desperate need of assistance. The Iraqi government has called upon the US military for help, but the Iraqi’s pleas for help have thus far fallen upon deaf ears. US military officials have not ruled out providing assistance in Iraq, but are clearly being hesitant to do so.
As you could have probably guessed, the last few days’ worth of violence in Iraq has caused safe-haven demand to once more become a factor. As investors head into a mostly quiet, but uncertain weekend, it only makes sense that they are more readily flocking to safe-haven US treasuries and metals.