Precious metals began the day moving slightly upward due to softer equities and a softer US Dollar, but that progress was quickly wiped away later in the morning. This week is already shaping up like it will be slow and quiet, though this should not come as too much of a surprise when you consider the fact that Christmas day is on Thursday. We received some noteworthy economic data from the United States on Monday, but it did not really move markets too much.
Because this is a holiday week, you can expect that today, tomorrow, and Friday will be light days of trading simply because most people are getting an early start on their holiday vacations.
Russia Making Headlines…Again
For the better part of the last half year or so, the Russian government and economy have both been in and out of the headlines. Whether it be their military’s actions in Ukraine, the falling value of crude oil, or Western sanctions, there is always something to talk about concerning Russia.
This week, there was a report from Russia claiming that the Kremlin is continuously adding to their precious metals holding. According to the report, as of December 1st Russia eclipsed 38 million ounces in gold holdings. What’s more, the Kremlin is said to have been adding gold to its stockpile for the past 8 months consecutively.
In the words of many experts, Russia’s commitment to purchasing gold is said to be in an effort to fight off the declining value of the ruble. In case you were unaware, the ruble has been on an almost straight downward descent for the better part of this year. Now, Russia’s currency is worth less than half of what it was a year ago. As we head into the new year, it will be interesting to see what the Russian government does to combat their currently underperforming economy.
The spot values of gold and silver will be watched as we venture further into this holiday week, but in this bearish market, it is looking like the losses will continue to accumulate. Still, with that being said, current spot values are up off daily lows and slowly but surely improving. With some luck, gold and silver might just be able to finish today in the green.
As we look ahead to tomorrow, I imagine that things will remain quiet and subdued mostly because it is Christmas Eve and so many people are off work. Markets will still be open, but I do not anticipate that they will play host to a whole lot of activity.