For the second consecutive day, gold and silver spot values are declining slightly as a result of a slight technical correction and some mild profit-taking. After gold hit a 3 and a half month high on Tuesday, and has been trending upwards for the past week, it was only a matter of time before profit-taking and/or technical corrections made an appearance.
Today’s big news revolves around the release of the latest FOMC minutes. Due to recently poor economic data from the United States, investors from around the globe will be paying attention to today’s minutes in hopes of hearing any news with regard to future plans to continue tapering.
Gold, Silver Hanging On To Momentum
Thanks to a lack of fundamental inputs this week, investors and market analysts are seeing very clearly that precious metals bulls have the near-term momentum. Though profit-taking is making an appearance as of the last few days, the marginal impact it is having on precious metals spot values is telling of the strength and positive outlook developing towards commodities, specifically gold and silver.
The only real input worth talking about this week is today’s FOMC minutes. Though it is unlikely, investors are hoping to hear more information about the FOMC’s future plans to taper. Instead, the minutes will likely see the FOMC reiterate their positive outlook on the US economy.
In other news from around the world, violence between protesters and riot police in Ukraine is beginning to escalate. Political tensions have been an ongoing problem in the large European nation since last November when Viktor Yanukovych made the move to cut ties with the EU in exchange for a $15 billion economic bailout from Russia. Recently, however, violence and protests have begun to worsen and threaten the overall stability of the nation. This situation, as it grows more dire, will likely end up translating into yet another bullish factor driving safe-haven demand for gold and silver.
For the first time in a long time, precious metals have the near-term momentum and are growing stronger with each passing day.