November 19th Midweek Silver Market Update

Gold and silver spot values are holding steady as of the middle parts of the morning on Wednesday. Just like last week, this week is shaping up to be fairly quiet and devoid of any economic data. The exception to that will be today when the FOMC’s minutes from their most recent meeting are released. Up until this point, precious metals have fared decently and are actually on the positive side of things as of the middle of the week.

In case you missed it, the earlier part of this week brought about a downbeat GDP data out of Japan and the news that the Japanese economy is now experiencing recession. For the third-quarter of 2014, it was reported that the Japanese GDP declined during the third quarter as opposed to making gains as were expected.

European Central Bank Considering QE Measures

Over the course of the last few months, it has not been a secret that the European Union and its collective economy have been faring poorly. While we did receive word of an upbeat economic expectations report out of Germany a few days ago, the overall outlook on the European economy is anything buy positive. In fact, most reports we receive from the EU have been negative in nature and are looking like they will stay that way.

Earlier this week, however, we received word of European Central Bank president Mario Draghi potentially opening the door for more robust quantitative easing measures. In comments made to media, the leader of the ECB reiterated that the purchase of government bonds is not yet out o the question and may be pursued some time in the near future. While the ECB has already enacted measures such as lowering interest rates and buying stocks in an effort to spur the EU economy, they have yet to begin purchasing government bonds.

It will be interesting to keep an eye on Europe over the course of the coming weeks just to see if they plan on following through with bond purchases or if they will hold off on doing so. At present, the thought that QE is just around the bend for Europe has taken its toll on the Euro currency. Despite the US Dollar’s muted progress this week, the Euro still finds itself in a downtrodden position and lacking any real momentum.

As we look ahead to the last few days of the week, it is likely that investors will continue to keep a close eye on any and all developments from the European Union.

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