July 25th Weekly Silver Market Update

Gold and silver have made some small gains in the early going of Thursday mostly thanks to a lower US Dollar Index. Since the end of July and beginning of August is an incredibly popular time for family vacations, the world marketplace is significantly quieter than it is at most other times of the year. This quieter trading atmosphere, coupled with little to no big economic news stories means that precious metals will have a hard time moving drastically in one direction or another. Yesterday we witnessed a few Purchasing Manager’s Indexes from around the world which greeted investors with mixed results.

The US Dollar Index is going to be the main thing on worldwide investors and market watchers’ minds as it has been the main piece of data influencing the movement posted by precious metals spot values.

Yesterday’s PMI Reports

The first Purchasing Manager’s Index report we heard about yesterday was that of China’s. While it wasn’t expected to be a great report, the actual numbers came in far weaker than expected. China’s latest PMI posted a reading of under 50 which, as many investors know, is a reading that suggests economic contraction is being experienced by the economy in question. For the past few months now many have called into question the strength of the Chinese economy and whether or not it should still be labelled as the world’s second strongest. This PMI report is perhaps one step in the direction of downgrading the Chinese economy to 3rd or 4th strongest in the world, though only time will tell if economic prospects in Asia’s biggest country are going to get better or worse.

The EU PMI report, on the other hand, gave good news for the first time in over a year and a half. For the first time in over a year and a half the EU PMI is above 50 which is great news for Europe. It will be interesting to see if Europe can build upon this positive report and once again become an economy to reckon with in the world, or if they will slip right back to their old ways.

Other World News

The US Dollar Index is the main piece of information on everyone’s minds this week as it has been one of the few things dictating which direction the spot values of gold and silver were headed in. With few news stories to round out the week it is unlikely that gold or silver will make any drastic moves, though anything can happen.

Posted in News

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