Gold: $1,293.61 9.44
Silver: $17.17 0.12
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July 1st Mid-Week Market Update
Article By: Matt Zeman on July 01st, 2015

Silver prices are slightly lower this morning as the white metal continues to try to find some solid footing. Silver is near a prior support area in the neighborhood of $15.50 and may see a bounce from this level. On the other hand, a clean breach below this level could potentially set the stage for another run lower in silver that could potentially see prices approaching the $10 per ounce level.

Greece is now officially in default, having missed a large payment to the IMF due yesterday. This did not come as a surprise, however, as many analysts believe that the country has simply been kicking the can down the road. Although markets opened up significantly lower Sunday night and sold off during Monday’s session, Tuesday brought a much calmer tone to the marketplace, and stocks are higher today as investor appetite for risk still appears to be robust.

There have been some reports on Greece and the IMF getting closer to a deal to re-structure the nation’s debt. This would be seen as a positive by global markets, although Greece’s creditors are not pleased.

For now, markets are in a more optimistic mood, as hope that a deal to keep Greece in the EU will be reached. That can change quickly, however, if a deal remains to be reached. Investors do not appear to be overly concerned about the threat of contagion at this point, but will likely keep watching the situation closely.

There is a large amount of data being released today with markets getting the latest on motor vehicle sales, the Challenger Job-Cut Report, ADP Employment Report, ISM Manufacturing, PMI Manufacturing, construction spending and energy stocks.

Markets are looking forward to tomorrow’s release of the Department of Labor’s non-farm payrolls data for June, in which an increase of 230,000 jobs is expected with the unemployment rate dipping to 5.4 percent.

Good data today and tomorrow will likely fuel further appetite for risk, and may keep stocks on a march back to the upside. Positive data at the same time may bolster the Fed’s position on raising rates, and could potentially weigh on gold and silver as investors seek out risk.

Markets will be closed this Friday for the fourth of July, and the shortened trading week could potentially add some volatility in today and tomorrow’s sessions.

Silver may be purchased by bargain hunters at current levels, but given its lack of upside follow through in recent months, the possibility of a fresh leg lower in prices cannot be ignored.