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July 9th Midweek Silver Market Update

Gold and silver are trading upwards during the first half of Wednesday as a result of chart-based buying and a renewed safe-haven demand. Platinum and palladium, both of which have been doing well this week, are also trading up today, but only slightly. The big piece of news being made public today and this week is the release of the FOMC’s minutes from their latest meeting.

Generally speaking, this week has been a quiet one from a trading standpoint and is playing host to very few major economic data points. However annoying, this type of market atmosphere is normal for summer as most traders are on vacation or otherwise away from their offices.

US Dollar Rebounds, But Only Slightly

The US Dollar is putting a halt to losses conceded earlier this week to the yen as investors continue to speculate with regard to when interest rates in the United States will be raised. With many people expecting to hear news of higher interest rates before next year as a result of today’s FOMC minutes, it makes sense that the Dollar is regaining some of the value it lost to a stronger yen.

On the other hand, however, the euro added to three days of consecutive gains against the Dollar as it approaches a key technical price point.

US Equities Improve, But Worries Still Linger

After recording large losses on both Monday and Tuesday, investors were worried about the immediate future of US equities. The DOW, S&P 500, and Nasdaq have all been on an upward trend over the course of the last few months and, as such, investors and market analysts alike are beginning to wonder when the bullish run will end and equities correct themselves lower. In the wake of last week and the first few days of this week, many were convinced that a downward shift of US equity markets was just around the corner. Today, however, equity markets are posting gains and are exhibiting the near-term technical momentum many thought had already run out.

Investors may not know when the bullish stock market run will end, but most of them are convinced that something has to give soon.

More Violence In the Middle East Pushes Metals Forward

With all this talk of potentially raised interest rates in the US coming before long, it is coming as a surprise to many that metals are trading upwards today.

A major reason behind today’s gains is safe-haven demand coming as a result of more violence in the Middle East. While the Iraqi civil war has been a focal point of the market’s attention for the past few weeks, this time we are paying more attention to violence in Israel. The Israeli military, in response to increased rocket fire from Palestinians, has launched a large-scale offensive on may parts of the Gaza Strip. With the verbal threat of more violence to come already out in the open, many investors are scrambling to get their hands on safe-haven precious metals.

Though the situation in Israel is still unfolding, it has already produced a hefty amount of violence, death, and destruction. For these reasons and more, we and the rest of the market will continue to keep a close eye on all that happens in and around Gaza.

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