Gold and silver spot values are continuing to hover near even for a third consecutive day this week. Today saw the FOMC release a statement in the wake of their monthly policy meeting for June, but it ended up only having a marginal impact on the market as everything the committee had to say was more or less expected by the marketplace.
Investors’ attention continues to remain fixated on the ongoing regional issues in both Ukraine and Iraq as neither really looks like it is headed for a resolution anytime soon. Goth disputes are doing well to fuel safe-haven demand for gold and silver and are a large part of the reason why metals are continuing to hold steady over the last week or more.
Iraqi Civil War Threatens Stability of Nation And Region
For about a week or more now, the world has been paying more or less steady attention to what is happening in Iraq. Major news outlets have been reporting that an Islamic military group known as ISIS is currently wreaking havoc throughout much of Iraq, specifically northern Iraq.
An increased number of Iraqi soldiers have abandoned their posts and have sought refuge elsewhere after widespread reports of torture and decapitation surround stories of soldiers who have gone missing. ISIS is continuing its path of destruction further into Iraq’s south and will, within only a few days, be approaching the capital city of Baghdad. For these reasons and many more, Iraqi officials have called upon the United States to provide some sort of military assistance. The US responded and, albeit reluctantly, announced that they will be providing Iraq with a few hundred special operations troops as well as military advisers.
As this situation rages on, it is continuing to see precious metals spot values rise as a result of safe-haven demand. With no end in sight, it is becoming increasingly likely that both this situation and the ongoing natural gas dispute in Ukraine will continue to provide a buffer for precious metals; preventing them from falling too far from current price levels.
The FOMC announced today that it would continue with another $10 billion monthly reduction to the Quantitative Easing monetary policy. The market was widely expecting this announcement and did not really react too much to it. As such, gold and silver were and still are able to retain this morning’s marginal gains. As we head into the latter stages of the week it is clear to see that investors will continue to closely analyze the ongoing situations in Iraq and Ukraine.