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August 27th Midweek Silver Market Update

Precious metals began the day in upbeat fashion, but by the time markets closed it was clear to see that they had once again fallen victim to stronger US equities. Generally speaking, this week has been very quiet and absent of any markets-moving economic data. As such, the price movement of precious metals has been within a fairly well-defined range.

A few geopolitical events captured the attention of the marketplace on Tuesday, but they did not do much in the way of aiding precious metals, but rather, prevented them from slipping further. According to Ukrainian military officials, another column of Russian tanks crossed over the border into Ukraine. On the same day, Moscow announced that it was planning on sending another humanitarian aid convoy into the most war-torn regions of Eastern Ukraine. It will be interesting to see how these events play out over the coming days and weeks because, as always, they stand the chance of moving the spot values of precious metals in one direction or another.

Subdued Marketplace Continues for Yet Another Day

This week has thus far panned out exactly like you would a late-August week to. There have been very few major marketplace developments and even less economic data on the table. US equities have performed well for a majority of this week, and that has naturally made it hard for gold and silver to gain much of any traction. The S&P 500 in particular performed well so far this week, especially considering it crossed over the 2,000 threshold for the first time in its history. The index has since more or less sustained those gains and is, like most US equity markets, in a very strong position at present.

The US Dollar Index trended downward today, but it has also been performing well lately and has been bashing rivals such as the Euro currency. Especially after last week, when European Central Bank president Mario Draghi alluded that further monetary stimulus may be coming in the near future, the Euro has been under a lot of pressure.

Through the rest of this week I expect that things will remain more or less the same. There isn’t too much economic data on the slate and while investors are focusing, to some degree, on the geopolitical issues going on throughout the world, they aren’t having too much of an impact on the spot values of precious metals.

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