After spending the better part of the last three days posting losses, both gold and silver are seeing their spot values move upward on the last day of the week. Despite a strong presence of bargain-hunting, the spot values of metals are likely to finish the week posting losses thanks to the consecutive string of losses recorded from Tuesday through Thursday. Unfortunately for metals, the past 5 days have been especially quiet and devoid of much markets-moving economic data, and this has weighed heavily on spot values.
As we look ahead to next week, it is already looking like the next 5-day trading session will be much more action-packed than the one we just saw. There is plenty of economic data on the slate, and much of it is expected to impact the global marketplace in one way or another.
FOMC Minutes Take Market By Surprise
Despite the fact that there wasn’t much economic data to talk about this week, investors the world over did get a chance to peruse over the minutes from the FOMC’s March meeting. Initially, and before the minutes were released, it was not anticipated that they would unveil any new or interesting bits of information. Quickly, however, that all changed once it was realized that the Fed is currently split in half, with 50% of its members thinking that rate hikes should take place sometime soon, while the other 50% think it is best to wait until next year to institute rate hikes.
The minutes’ release was such a big deal simply because last Friday’s much weaker than anticipated employment report from the United States caused most of the global marketplace to be convinced that rate hikes would not be taking place anytime this year. Now, and thanks to the minutes, there has been a revival in the belief that the jacking up of interest rates might happen as early as June or July. Though there is no real, concrete evidence to support this belief, it is growing once again.
For precious metals, the fact that the minutes were deemed as being more hawkish than expected, losses began mounting almost immediately. Starting on Tuesday and carrying through the day on Thursday, metals were the victims of consistent losses, albeit only minor to moderate losses. Now, thanks to three days of a downtrend, metals are seeing some respite offered in the form of a technical correction and bargain-hunting buying. Of course, as is typically the case, it is going to take much more than bargain-hunting alone to bring spot values back up from their currently suppressed positions.
Looking Forward to the Week Ahead
Now that this mostly slow week is mostly behind us, it is time to look forward to what the next 5-day trading session has to offer. For now, the market is anticipating a good bit of economic data to be released form various parts of the world, including the US and Europe.
From the US, the market is looking forward to a retail sales report from March that is expected to show positive figures. Many experts feel as though March was great for retailers and will break the recently poor run of form retail sales in the US have put forth. Also from the US is a housing starts report that is expected to be on the positive side of things. If these two very important reports come back in line or better than expectations, metals very well might suffer even further losses. For now, however, we will just have to wait and see what the next 5-day trading session has in store for metals.