Precious metals rebounded a bit on Wednesday after the first two days of the week brought nothing but losses. There hasn’t been too much for investors to discuss through the early parts of the week, but that is going to change come tomorrow and the next day.
Despite there not being all that much economic data on the table, investors have been paying attention to a situation unfolding in Hong Kong. Beginning late last week, Hong Kong citizens, mostly students, have taken to the streets in order to protest what they are calling a lack of democratic reform. Initially, riot police clashed with the protesters and were even seen dispatching tear gas, but things have gotten significantly calmer since the weekend clashes. Despite the relative calm, stock markets from around the world have suffered pretty heavy losses stemming from the unrest happening in the financial capital of the world. As the days and weeks progress, we will continue to keep an eye on anything and everything happening in Hong Kong.
Heavy Slate of Economic Activity Looms Large
Looking ahead to tomorrow, investors will be anxious to hear what the outcome of the European Central Bank meeting brings. Due to the sub-par nature of recent EU economic data, most of the world will be tuning in in order to hear what ECB president Mario Draghi has to say about where the European economy is headed. Though there are some who think more policy shifts are needed, it is highly likely that we will see no policy shifts tomorrow. After all, the ECB has recently instilled new, looser monetary policy that is aimed at fighting deflation and propping up the EU economy. Unfortunately, however, none of these policy shifts seem to be having any real impact on the recovery process for the European Union.
On Friday, the attention of investors will shift once more to the latest US employment report from September. Despite a small batch of sub-par economic data today, most investors are expecting job growth from September to be very healthy. After all, the US economy has been performing extremely well in recent weeks and is looking as strong as ever. This is a major part of the reason behind why gold and silver spot values have suffered such heavy losses over the course of the past month and a half or so.