Gold and silver are trading near even to slightly lower for yet another day during the morning hours of Tuesday. Investors are preparing themselves for a full day of US economic data expected to contain a few very important reports. To be fair, this entire week is full of economic data; a nice change from last week’s dull nature.
The market is still keeping an eye on Russia, though tensions between Russia, Ukraine, and the West have significantly calmed down from what they were only a few weeks ago. Still, reports continue to stream in claiming the Russian military presence along its border with Ukraine is growing by the week. Because of the lingering possibility that violence may come as a result of tensions between Russia and Ukraine, the market will continue to keep an eye on any and all events stemming from the ongoing situation.
Tuesday’s Economic Data Slate
This week is a big one for investors because a lot of March’s economic readings are expected to be made public. Among the reports being released today, none are more important than the latest manufacturing PMI and the ISM manufacturing report. There are many other reports on the table today, but investors will focus on these more than any of the others.
The biggest report being released this week will come Friday in the form of the latest non-farm payrolls data. After hearing Fed members boast about the strength and growth rate of the US economy over the past week or so, most are expecting to see a healthy number of non-farm payrolls added once the report is released on Friday.
In addition to the United States receiving their most recent manufacturing PMI sometime today, China and Europe are receiving theirs too. China’s report beat market expectations and rose for the first time in a half year. February’s PMI reading of 50.2 was bested by March’s reading of 50.3. This is not a great increase, but in light of recently weak Chinese economic data investors will be happy about any report that isn’t wholly negative.
The EU saw their latest PMI reading decline in March, a report that added more fuel to the speculation fire. As it stands, most people think that the European Central Bank will be forced to increase monetary stimulus in order to fight deflation. With the latest ECB policy meeting scheduled to take place this Thursday, some are thinking that new monetary stimulus may be announced as early as this week.
As we move into the new month of April, gold and silver are very much on the decline thanks to a lack of bullish news and an exorbitant amount of worries with regard to metals’ long-term future. With the possibility of interest rates being risen within the year, investors are becoming increasingly skittish when it comes to pondering an investment in gold or silver.
