Gold and silver spot values are moving mostly sideways to begin the day on Wednesday and to end the short holiday week for many Americans. As surprising as it may be, today is going to bring about a good quantity of economic data from the United States. Yesterday also played host to a decent amount of economic data, but it really didn’t have too much of an impact on the marketplace. What yesterday’s data did do, however, was limit the buying interest associated with gold and silver.
Despite the fact that most people in the United States will be out of commission for the duration of the week, there is a very important OPEC meeting expected to be held on Thursday. With crude oil prices continuing to hover near multi-year lows, the massive Middle Eastern oil cartel will need to do something quickly if they want to stabilize and grow spot values. For gold and silver, oil’s recent troubles have acted as a weight dragging them and all raw commodities downward.
Upward Revision for US 3rd Quarter GDP
Yesterday’s big news came in the form of a revised third-quarter GDP report from the United States. Initially, the first third-quarter report showed that United States GDP grew by more than 3.5% on an annualized basis this year. However, yesterday’s revision showed that actual GDP growth was just shy of 4%. This news helped give stocks and the Dollar a boost simply because the revision saw third-quarter US GDP beat the lowly expectations of just over 3% growth.
Of course, upbeat economic from the United States almost always levies downward pressure against gold and silver, and this time was no different. Now, it seems as though gold and silver are stuck trading in small, well-defined ranges due to the lack of any bullish fundamental news.
In other news from early this week, the Organization for Economic Cooperation and Development (OECD) released a statement yesterday condemning the slow growth of the many economies that make up the European Union. In the statement, the OECD said that slow EU growth is and will continue to be hurting overall global economic growth. As one potential remedy, the OECD suggested that more government spending may be in the cards. This suggestion is extremely intriguing considering that European Central Bank president Mario Draghi, just last week, announced that he and his colleagues are considering the implementation of quantitative easing measures as a means of spurring economic growth. For this reason, the next few weeks, which are supposed to include the next ECB policy meeting, will be especially intriguing for investors from all over the world.