June 5th Silver Market Update

As of mid-morning on Thursday, gold and silver spot values are, surprisingly enough, edging noticeably higher. The European Central Bank just recently wrapped up their monthly policy meeting, and much like the market expected, they announced new monetary stimulus measures to be implemented in the near future. The US Dollar is also making significant gains this morning, though that is to be expected considering how the ECB’s decision has thus far affected the euro currency.

The market’s collective attention has now shifted to tomorrow’s US employment report for May. After yesterday’s ADP report fell far short of market expectations, it is expected that tomorrow’s data will be none too different.

ECB Decision Not Surprising To Precious Metals Investors

It came as no surprise when it was announced that the European Central Bank would pursue fresh monetary stimulus measures in order to combat rising deflationary pressures. The European Central Bank decided that they would reduce the refinancing rate across Europe by 10 basis points and also introduced a -.1% deposit rate. The euro is now sitting at a 4 month low, though this was widely expected to happen in the wake of new stimulus measures.

What is interesting, however, is the fact that gold and silver spot values are edging higher despite the US Dollar doing the same. Some market experts feel that gold and silver’s positive response to the ECB’s decision has to do with investors already factoring in stimulus ahead of time. Though metals are edging higher now, it will be interesting to see how they will fare over the coming days and weeks.

Rounding out the week is tomorrow’s US non-farm employment report for May. Should tomorrow’s data show sub-par job growth in line with yesterday’s ADP report it is more than likely that gold and silver will receive another boost. The Bank of England also held their monthly policy meeting today, but nothing noteworthy came as a result.

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