November 7th Weekly Silver Market Update

Gold and silver have suffered small, yet consistent losses for a majority of the week in the days before the latest European Central Bank meeting. Though the ECB meeting was what most investors focused on this week, some surprising US economic data made for an eventful Thursday.

Tomorrow will yield October’s employment report, another piece of economic data to fuel the speculation in regards to when the FOMC will alter US monetary policy.

ECB Meeting Yields Surprising Results

Prior to the ECB meeting today, there were divided opinions in regards to what the outcome of the meeting would be. On one side, you had investors and market experts who believed that the time was right for the ECB to slash its key lending rate. On the other hand, however, other investors and experts believed strongly that the ECB would not alter its key rate or any other aspect of monetary policy.

The meeting today saw the ECB reduce their key lending rate by .25% to a new rate of .25%. In the immediate aftermath of the news precious metals made gains, though the euro quickly declined and brought about a new surge by the US Dollar. The improving Dollar made for some heavy downward pressure being placed on precious metals. This news came as a shock to some but was exactly what others had expected.

US Economic Data

Today also saw investor attention being fixated on the annualized third-quarter GDP reading. While markets were expecting a rise in annualized GDP in the neighborhood of 2.5%, actual figures showed that US GDP rose by just about 2.8%. This also helped the USD make more gains against the euro currency.

Tomorrow we will see October’s unemployment report, one which is expected to show a rise in non-farm payrolls of about 120,000. If tomorrow’s employment report is as good as many are expecting, perhaps we will hear a new tone in regards to when QE will be tapered.

Posted in News

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