Gold and silver were able to make marginal gains in the early morning hours on Thursday, mostly thanks to a weaker US dollar. The marketplace was paying close attention to the policy meetings of both the ECB and the Bank of England, though no major changes in policy were announced. There is some light economic data set to be released today out of the United States but it is not expected to do much of anything to precious metals. The Japanese Nikkei Index fell again during the overnight hours as it hit its lowest point since this past April. This whole week has been negative for anything having to do with Asian markets, especially Japan and China.
Europe Takes the Spotlight
Both the Bank of England and the European Central Bank had policy meetings today yet interest rates and monetary policy in both regions remain unchanged. In the lead-up to both of these meetings no one was really expecting any major news and thus the marketplace did little moving in the wake of both meetings. The ECB is going to have a press conference at some point this morning, and the talking points during this conference are going to be watched and listened to by investors and market watchers.
With how bad European economies have been doing lately you would think that the press conference would give us some insight on how European leaders are going to combat such difficult economic times, though I wouldn’t hold my breath. Europe and its leaders are and have been doing a great job of avoiding the mounting problems, both debt and economic, that are facing the region.
Keeping Up With the US Economy
Like previously stated, there are a few economic reports set to be released in the US on Thursday including the weekly jobless claims report and the Challenger job cut report. Last week saw the weekly jobless claims come in with a higher reading than expected, especially with how well the US economy has been doing lately.
Tomorrow we will see an unemployment report out of the United States and the data we are expecting to see should all be positive. It is anticipated that we will hear about a near 200,000 increase in non-farm jobs. In addition to this we will also be expecting to see the unemployment rate in the US to remain level at about 7.5%. Something that helped gold and silver make the minimal gains that they did make on Thursday was the fact that the US Dollar was trading weaker this morning and weaker still during the overnight hours last night.
Closing Out the Week
The main bit of news we are waiting to hear about was already mentioned, and that is tomorrow’s employment report. The US economy has been doing extremely well lately which is why people are expecting nothing but good thing from tomorrow’s report. Not only that, but since US monetary policy is still up in the air at this point, investors and market watchers are convinced that every bit of economic news will affect monetary policy one way or another, though time will only tell if this sentiment is true or not.