Despite some early profit-taking from recent gains, gold and silver were able to bounce back and finish the day near even. The market’s focus remains on the violence in Iraq, but was drawn away a bit today as some US economic data surfaced.
As we head into the latter stages of the week it is likely that we will continue paying attention to the geopolitical unrest in both Ukraine and Iraq. Neither situation is close to being resolved, and, as such, it will remain to be in the headlines for the foreseeable future.
US Economic Data Has Little Impact On Market, Safe-Haven Demand Remains Strong
This week is not at all scheduled to emit major economic data, but today played host to the release of the United States’ 1st quarter GDP report. The data was less than stellar as it showed a nearly 3% annual decline, the largest such decline in a few years. Piling on the poor economic data was a report indicating a 1% decline in durable goods orders in May. This news played right into the hands of those who think tapering should be slowed and that the Fed should step back from their current course. This news was an underlying bullish factor for precious metals and ended up providing a nice lift from the pull of early morning profit-taking.
The civil war in Iraq continues to rage on as reports are filing in with regard to the first US military advisers landing in Baghdad. While it is still unclear what type of assistance these advisers are going to provide, they will be welcomed by open arms from an Iraqi security force that has been decimated over the past few weeks. As the Islamic militant group ISIS continues to make its way further south and closer to the capital city of Baghdad, they have reportedly been spreading out and making themselves more difficult to attack.
As we head further into the week, the market’s main focus will remain continuously focused on Iraq and all of the developments there.