Gold and silver spot values are trading lower on Thursday despite there being very little economic news to talk about. As has been the case for the past two weeks or more, the market is continuing to focus on any and all developments stemming from the civil war in Iraq. With no end in sight, violence in the Middle Eastern nation is only seeming to get worse as the days pass. US military advisers have reportedly touched down in Baghdad, but their limited numbers are expected to make only a limited impact on the situation.
Yesterday brought about some US economic news, including the 1st quarter GDP report, which was weaker than expected and ended up giving gold and silver a slight boost. You see, the somewhat recent stream of poor economic data is making a large quantity of investors believe that perhaps the Federal Reserve is acting a bit too fast with regard to their tapering of Quantitative Easing and should consider slowing down the rate at which they are doing away with easy money. With that said, however, the Fed has not so much as hinted at the possibility of them cutting back on tapering.
Spot Values Edge Lower On Quiet Economic Day
Today has been a fairly quiet one from a geopolitical and economic standpoint as no major pieces of data are expected to be made public. A European Union summit, scheduled to conclude at the end of the day on Friday, is convening in order to discuss the ongoing tensions in Ukraine as well as the potential for sanctions to be placed on Russia as a result of their annexing parts of Ukraine. Due to the generally quiet nature of the market today, investors will be keeping an eye on what comes as a result of this week’s summit.
Another report that is of particular interest to investors is one from China which claims that authorities there uncovered and subsequently broke up a more than $15 billion illegal gold financing scheme. Many feel as though this is why precious metals are feeling some downward pull on Thursday as a similarly illegal copper financing scheme, broken up a few months ago, pulled the spot value of copper down when it was made public. It will be interesting to see how the market reacts to this over the next few days.
In addition, the market will continue to focus on the civil war in Iraq as that has been driving safe-haven demand for the metals for nearly 14 days now.