Gold and silver spot values are a bit firmer today but are not doing much in the way of making gains. A weaker US Dollar index is helping prevent metals from falling even further, but that is about the only factor working in precious metals’ favor today.
Yesterday there was some important news that came in the form of speeches made by Russian president Vladimir Putin and president of the US Federal Reserve Janet Yellen. Putin, in his address, shocked the world by claiming that he is willing to pursue peaceful means to resolve the crisis in Ukraine. After countless reports streamed in claiming that Putin had a direct hand in the annexation of Crimea it is interesting to see him express a desire to resolve the situation in Ukraine peacefully.
As for Janet Yellen, she, when speaking to the Congressional Joint Economic Committee, reiterated her positive outlook on the US economy. What’s more, she went on to say that interest rates will more than likely remain low for the foreseeable future, contrary to recent rumors which claimed that interest rates in the US may be risen as early as next April. As you could have probably guessed, these two events ended up putting a lot of downward pressure on metals and were major contributing factors to why metals declined so drastically on Wednesday.
ECB Meeting On The Mind Of The Investing World
As soon as this week began investors were gearing up for a mostly slow 5-day trading session. With few economic reports on the table there really wasn’t much to look forward to apart from today’s European Central Bank policy meeting. The meeting, which wrapped up not too long ago, emitted no major changes to monetary policy, contrary to the expectations of a lot of people.
Despite there being no new monetary policy measures instituted as a result of this week’s policy meeting, that does not change the very obvious fact that price deflation is becoming an increasingly large problem for most of Europe. For this reason it is still widely believed that the ECB will have no choice but to implement monetary policy changes sometime in the near future. Currently, the euro currency is at a multi-week high and is a major contributing factor to the dollar’s most recent decline.
Janet Yellen once again spoke to members of Congress today but the content of her remarks were none too different than yesterday’s. She once again reiterated her positive outlook on the US economy and made it clear that interest rates would likely remain unchanged for the foreseeable future.