July 2nd Midweek Gold Market Update

Gold and silver spot values are hovering around even today but are still feeling upside momentum. There are a few economic reports for investors to mull over today, but none is more important than the ADP employment report for June. Some light data was also reported today from Europe, but it didn’t really have much of an affect on the marketplace, at least not the precious metals market.

The ongoing violence in Iraq has faded out of the headlines for now, but is still on the minds of investors. Despite violence abounding throughout large parts of the country, the bloodshed is nothing like it was a week or more ago. US military advisers are now on the ground so I’m sure we will hear more about this developing civil war as more information is made public. Safe-haven demand for gold and silver stemming from the violence in Iraq has taken a bit of a step backwards, but is still a market factor at present.

Light Day of Economic Data, US Employment Report To Look Forward To

More downtrodden economic news from Europe was made public today in the form of April’s report on producer prices. The data showed that EU producer prices were down by a tenth of a percent in April and had fallen by a whole percentage point on an annual basis. This news only adds to a recent string of poor economic reports stemming from the European Union. With the European Central Bank scheduled to hold their monthly monetary policy meeting on Thursday, it will be interesting to see if they have anything to say with respect to continuously falling price levels.

While most investors are anxiously awaiting Thursday’s release of the US employment report for June, today yielded the oft-overlooked ADP employment report. The report showed that more than 280,000 jobs were added to the economy in June, a number that handily beat market expectations. This upbeat report on the US employment sector did well to halt the progress of gold and silver spot values. Still, it is going to take more than an upbeat ADP report for precious metals’ current momentum to be undone.

Because traders from the United States will have the day off on Friday in order to celebrate the Independence Day holiday, this week will be shortened. Still, tomorrow is expected to bring with it plenty of economic data that will assuredly have some sort of impact on the precious metals market.

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