Precious metals received some support to close out the week, but this 5-day trading session saw the losses pile on. This week saw stocks and the US Dollar make massive strides forward despite there not being all that much economic data on the slate. What did make an impact on the market, however, was Wednesday’s release of the FOMC’s minutes from their latest meeting. Additionally, a global central bankers meeting kicked off today, so the market has been paying close attention to all the meeting’s proceedings.
FOMC Minutes Deemed Hawkish, Hurt Precious Metals
The biggest data point of the week came Wednesday in the form of the FOMC’s latest minutes. Though the minutes are always hawked over by the investing world, this time around investors were hoping to hear some more information with regard to the exact timing of interest rate hikes in the United States. Shortly after the minutes were released it became clear that the FOMC is confident in the improving nature of the US employment situation. As such, the investing world perceived this as meaning that interest rates are likely to be risen sooner rather than later.
In the aftermath of the minutes’ release, the spot values of precious metals began moving sharply downward. Things only worsened on Thursday as investors were given more time to mull over and discuss the minutes and what exactly they meant with regard to interest rates.
Apart from the FOMC’s minutes, this week saw investors focus upon the Jackson Hole, Wyoming central bankers meeting that kicked off today. With names like Mario Draghi and Janet Yellen expected to make speeches at the meeting, it should come as no surprise that the marketplace is paying close attention to the meeting. Unfortunately, other than these two events there really wasn’t all that much for investors to pay attention to. Being that we are directly in the middle of August, it should come as no surprise that investors and business people in general are using this time of year to take family vacations.