October 23rd Silver Market Update

Gold and silver spot values retreated for a second consecutive day as the global marketplace begins to calm down as the week nears and end. On the whole, there is a lot less volatility in equity markets as well as a lack of many geopolitical developments. Of course, yesterday brought about a tragic shooting in Canada’s Parliament building, a shooting that claimed the life of one Canadian soldier. As you could have probably guessed, equities moved drastically downward during the latter half of the day on Wednesday, but by today had bounced back by considerably margins.

Due to there simply not being many pieces of noteworthy economic data on the table for this week, investors are going to continue focusing on equity and currency markets to close out this quiet week. Now, after two consecutive days of losses, it will be interesting to see if precious metals can bounce back on Friday.

Stock Markets Respond Well to Upbeat Corporate Earnings Reports

The lack of geopolitical uncertainty has definitely come to the aid of equity markets this week, but helping stocks even further is the fact that most major corporations’ 3rd-quarter earnings reports are coming back much better than expected. Names like Apple are producing figured that have greatly passed expectations and are reviving confidence in the US economy. Unfortunately, however, the progress of equities may only be short-lived as a wide array of experts predict tumultuous times to come for the US economy.

USD Makes Gains Against Yen For 6th Consecutive Day

For almost a full week now, the greenback has been making massive strides forward against its Japanese rival. While the USD has been performing well for some time now, it is in recent weeks that it has really began to shine. As Japan and Europe pursue monetary policies that will ultimately weaken their respective currencies, it seems as though the US Dollar will continue making gains.

Unfortunately for precious metals, the greenback’s strength and success is only working to limit buying interest. During a week where physical demand for gold and silver is really lacking, a stronger Dollar is the last thing spot values need. Just today, the greenback was given a boost due to weekly jobless claims being the lowest they have been in nearly a decade and a half. Though there is still one day left in this trading week, it is shaping up to be shaky, at best, for gold and silver.

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