Silver and gold both had slow weeks yet again this week, with silver getting the shorter end of the stick. Regardless, both metals did not fall by alarming numbers or by alarming rates. A majority of the news this week was concentrated in the United States, with some residual market-relevant data stemming from Europe’s ongoing economic problems and the slowing Chinese manufacturing sector.
Americans everywhere are beginning to realize that their economy is not subdued or stagnant anymore. As a matter of fact it is hitting on all cylinders as seen by the recent form of both the stock markets and the value of the USD. While this week was not nearly as impressive as last week for both stocks and currency in the United States, the fact that both are maintaining their strong positions is good indication that the nation may be emerging from its less than stellar last few years.
Many experts believe that if things continue this way monetary policy will be changed. You would think that a surging dollar and improving stocks would hurt gold and silver, but despite all of this both metals have retained a fairly strong stance. Though if monetary policy is changed it may spell doom for precious metals. There has been no real talks of a change in the monetary policy of the United States but they could be just around the corner.
A report released this week spoke to the fact that recent Chinese manufacturing numbers were down compared to this point a year ago. This is yet another indicator that the thriving Chinese economy may not be taking part in such rapid growth.
Additionally Europe is still far from out of the woods as many of their nations continue to struggle with fixing their own economic problems. Public bond sales that are happening over the course of the next few weeks in Europe will be weighed heavily and investors will watch the results closely. Investor confidence needs to be restored before anyone can expect a resurgence in Eurozone stocks and stock markets.
Like previously mentioned, one of the biggest things to look forward to next week is a bond auction in Italy which will have heavy implications on their economy moving forward. After all, the recent elections did little to convince investors of much of anything.
From the open of markets on Monday to their close on Friday, gold moved from $1,579 to $1,593. Silver, on the other hand, moved from $29.07 to $28.85.