September 29th Weekly Silver Market Preview

Gold and silver spot values are moving lower as of the writing of this post. Metals continue to be pressured by a stronger US Dollar, which has been hovering near a 4-year high since late last week. Though some unrest in Hong Kong has provided gold and silver with a little bit of underlying support, the strength of the greenback has effectively made making gains impossible. This week is set to bring with it a large quantity of economic data, most of which will be of the utmost importance to investors.

Gold has been falling for the past few weeks, but seems to be gaining some support near the $1,220 level. So long as the geopolitical situations that are currently unfolding stay in the news, I think metals will be able to at least retain their current positions. With that said, however, there is no real way of knowing what the next few days and weeks have in store for precious metals.

Hong Kong Unrest Grabs Headlines

Beginning late last week, citizens of Hong Kong began taking to the streets in order to demand a more democratic government. To put it simply, citizens of the former British colony are fed up with the way things work in the region and want to be supported by a government that has their best interests in mind. As a result of the unrest, most world equities, including equity markets in the United States, have begun moving downward. While this is good for precious metals, the US Dollar has continued to trend near a 4-year high.

As we look ahead to the latter parts of the week, it is likely that things will begin to pick up and more activity will grace the marketplace. With interest rates in the US still the world marketplace’s hot topic, it is likely that investors will be using this week’s data as a way to gauge the current strength of the US economy as well as a way to gauge when exactly interest rates in the US will be raised. Unfortunately for precious metals, this week’s data is only looking like it will weigh more heavily on spot values as the market continues to be bearish as ever. With that said, however, a poor batch of data just might help gold and silver spot values regain some of the value that has been lost over the past few weeks.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>