Precious metals are trending slightly downward to close out an unimpressive week in unimpressive fashion. Being that this weekend marks the Labor Day Holiday in the United States, it should come as no surprise that trading volumes are lighter today as many investors and business people get an early start on an extended weekend.
On the whole, this week was fairly quiet, especially from an economic data standpoint. While there were a few pieces of data as well as a few geopolitical happenings to pay attention to, none of them have had any lasting impact on the spot values of precious metals. Instead, we are witnessing a market controlled by bears who are doing little else apart from pressuring metals and pushing their spot values downward.
Gold On Track For Monthly Gain
Though it may seem like the pressure has been piled on top of precious metals over the last few weeks, the reality of the matter is that, as of the writing of this post, spot gold is set to make a small gain for the month of August. Not many factors have come to the aid of the yellow metal, but here and there it was uplifted by the tensions and violence in Ukraine. Just this week, Ukrainian military officials were heard claiming that Russian troops had invaded parts of Eastern Ukraine. Initially, Russian military personnel denied the claims, but it was soon made clear that Russian troops had, in fact, crossed over the border.
Precious metals ticked ever so slightly upward upon the breaking of the most recent development in Ukraine, but today spot values were seen moving downward just a bit. It will be interesting to see if, over this holiday weekend, any other developments will be made public by the time next Tuesday opens up.
Generally speaking, this week was typical of a late-August week in that trading volumes were light and so too was the amount of economic data making splashes across the world. A second-quarter US GDP report was released yesterday, and its upbeat nature gave the US Dollar a bit of a boost. In recent weeks, the greenback as well as US equity markets have been seen trending upward and are at very strong points as of the writing of this post. As things begin to pick up a bit more during the early parts of September, it will be very intriguing to see if equities as well as the US Dollar can maintain this strength.