Gold and silver spot values are edging lower on Wednesday as investors await the release of the latest FOMC minutes. Seeing as the FOMC minutes are the only noteworthy piece of US economic data due out this week, it makes sense that investors are awaiting them so anxiously.
The crisis in Ukraine is not completely out of the news, but it has calmed down significantly from where it was a little more than a week ago. Just this Monday, Russian president Vladimir Putin called upon troops stationed along the Ukrainian border to return to their home bases. Up until this week, Russia was building up a strong military presence along their border with Ukraine in order to put more pressure on the Ukrainian military. Now that the Russian military is no longer a real threat to Ukraine per se, many believe that the Ukrainian military will more readily fight to oust pro-Russian rebels who have taken up positions in large portions of eastern and southern Ukraine.
FOMC Minutes Anxiously Awaited Upon By Investors
As we approach midday on Wednesday, investors are looking forward to the release of the latest FOMC minutes from their May policy meeting. Very few people are expecting to hear any news with regard to changes in US monetary policy, but the minutes, as they always are, will be hawked over by investors regardless. It is the opinion of many that today’s FOMC minutes will do nothing more than reiterate the Fed’s positive outlook on the US economy.
This prevailing belief is causing US equities to edge higher while T-bond yields are on the decline. If T-bond yields continue to fall, we may see an increasing number of market analysts question the actual strength of the US economy. Bond yields have long been a real indicator of economic strength, and if they continue to fall we will have no choice but to question how strong the US economy really is.
Similar economic concerns have been plaguing Europe as of late and are equally as important to worldwide investors. Even though this week has been quiet from an economic standpoint, it is looking more and more like the next few weeks will keep the market occupied.