Gold: $1,290.83 -1.77
Silver: $17.12 -0.05
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July 31st Weekly Silver Market Update
Article By: Kyle Wanchalk on July 31st, 2015

Precious metals had a fairly lackluster week, though spot values did not dip quite as dramatically as they did last week. For the most part, the global marketplace directed its attention to a slew of data points coming from the United States. These pieces of data were mostly upbeat and, as you can imagine, this did not help precious metals in the slightest.

As far as global economic happenings are concerned, there wasn’t much to speak of this week. Chinese stocks are continuing to suffer, which initially had a negative impact on US markets but did not end up affecting much by the time the week was through.

US Economic Data Remains Upbeat

One bright spot from this week was the slew of upbeat economic data we received. From Monday to Thursday, report after report indicated that the US economy is performing quite well at present. GDP Data took the cake as the most important piece of data released this week, and showed that the 2nd quarter of 2015 was a quarter of positive growth for the US.

In addition to the economy growing by more than was expected during the second quarter, the first quarter of this year’s figures were boosted as well, up from just under a half percentage point to nearly 3% growth. These figures are deemed as very important as the market continues to weigh in the fact that interest rates in the US are likely to be hiked sometime in the very near future. Driving the positive GDP data was the fact that the US Labor market is continuing to improve. Being that sub-par labor figures have been a constant cause for concern for investors, this data is somewhat refreshing.

While most of the data released this week was on the positive side of things, there were some unsettling pieces of data that showed not all is perfect for the US economy. During June, it was reported that consumer confidence across the United States fell dramatically. Experts were quick to retort, saying that the drag in consumer confidence can be directly tied to the Greek debt debacle and the recent slide of Chinese equities. Also, home sales took a dip in June too. This news wasn’t the most surprising, and was mostly ignored because the housing market in the US has been hot for a majority of the past year or more.

Fed Offers Very Little New Insight

As is always the case when the Fed meets, the market perked up. Because so many investors are expecting to hear about interest rate hikes before the Fall rolls around, it is only right that many were expecting some fresh insight on the matter from the Fed.

Unfortunately, and in typical Federal Reserve fashion, Janet Yellen and her colleagues failed to offer much new insight into the US economic situation. While they did maintain that the US economy is performing well still, they did not elaborate too much beyond that. All in all, this month’s Fed meeting was mostly a non-factor as investors opted to pay closer attention to the economic data that has been released over the past few days.

Looking ahead to next week, you can expect that the market will continue to focus on US economic data. As we approach the month of September, interest rate hike talks will only intensify. This is something that has been actively working against gold and silver, but is also one of the only things investors have to pay attention to at this point in time.