Gold and silver spot values are continuing to edge higher after extremely healthy gains were recorded on Thursday. Only one day ago, gold added more than $40 while silver was able to improve by more than $1. Officially, gold and silver have made their largest weekly gains in more than 3 months and are continuing to ride the wave of momentum to close out the week. Though today’s gains are nowhere near what the market saw a day ago, they are making it evident that the gold and silver bulls have taken control of the marketplace.
The big news of the week has involved the ongoing violence in Iraq as well as the FOMC’s latest policy meeting. Both of these events ended up giving gold and silver a boost that has helped the yellow metal continue to edge higher throughout the latter stages of the week.
Iraqi Civil War Fuels Safe-Haven Demand For Metals
For the past week or more investors have been paying close attention to the continued violence happening across Iraq. The Islamic militant group ISIS has been taking control of towns throughout the northern parts of Iraq and has threatened the stability of the country as a whole. There is no saying where this situation will head over the weekend which is why investors are continuing to get their hands on safe-haven gold and silver.
The US military has pledged to provide the crippled Iraqi military with military advisers and special operations forces, but such has not at all deterred the efforts of ISIS. So long as violence continues to worsen in Iraq, safe-haven demand for gold and silver will only receive an increasing amount of support.
Also helping precious metals this week was the post-FOMC meeting statement made by Janet Yellen to members of media. In her statements, Yellen made it clear that the Fed is in no hurry to raise interest rates and will not do so unless it is absolutely necessary. This bit of news caused many investors to flee the riskier investments they accrued over the past few weeks and run back to safe-haven gold and silver. We will continue to keep an eye on the situation in Iraq as it will continue to develop over the weekend and into next week. Seeing as the violence is nowhere near an end, many are expecting to see safe-haven demand for gold to only continue to rise.