Gold and silver have suffered a sub-par week thanks to a few different factors. On the slate for this week was a continued analysis of the ongoing tensions in Syria as well as some economic data out of both China and the United States.
As we look forward to next week, the main thing on investors’ minds is the upcoming Federal Open Market Committee meeting. The Fed’s policy meeting will likely see US monetary policy change, though this isn’t the first time we thought such would be the case. Investor appetite for risk has risen this week, and this is another major reason behind why gold and silver posted such dramatic declines.
Syrian Issues Continue
At the beginning of the week, it was looking more and more like the once tense situation regarding US military intervention in Syria was beginning to ease up. Russia had urged Syrian authorities to relinquish control of their remaining chemical weapons to the international community, a move that many thought would see the US back away from its plans to strike tactical Syrian positions.
However, on Wednesday evening, President Obama announced that he will follow through with his plans to attack Syria. Despite an overwhelming majority of Americans being opposed to any intervention in Syria, Obama feels as though using military force is necessary. He did not say when the attacks will happen or how long they will last, though it seems as though the attacks will take place sooner rather than later.
We will continue to monitor this situation in order to analyze any further developments. Despite a surefire plan for war, gold and silver did not really react to what Obama had to say.
Fall in Jobless Claims
This week saw what ended up being one of the biggest declines in weekly jobless claims since 2006. The official number came back and it indicated that 31,000 fewer jobless claims were reported this week. The Labor Department quickly made a remark, however, saying that the actual number may not be as drastic due to the fact that two states’ data were completely missing from the report.
Even though the Labor Department stated that the fall in jobless claims may not be as large as was reported yesterday, investors were quick to get rid of their precious metals. In the wake of gold and silver sell-offs, we also saw stocks rise significantly. Investors were seen taking more risks this week and so long as the upcoming Fed meeting goes the way many people think it will, interest in stocks will only rise further.
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