Gold and silver experienced mixed results but did not move too far from where they opened when all was said and done on Tuesday. There was little to no economic data on the slate today, so investors decided to instead focus on the ongoing geopolitical crises happening in various parts of the world.
Though today offered little in the way of economic data, this week will provide a good amount of data for investors to mull over and consider. Wednesday and Thursday will play host to the latest Federal Open Market Committee meeting and investors are expecting to hear of Quantitative Easing being further reduced. For that reason and more you can expect investors from all over the world to be paying attention to everything Janet Yellen has to say in her post-meeting address to media.
Violence In Iraq Threatens The General Stability Of The Country, Creates Safe-Haven Demand For Metals
For the last week or more, investors the world over have been paying close attention to anything and everything taking place in Iraq. The militant group ISIS, also known as the Islamic State of Iraq and Syria, has been wreaking havoc all throughout the northern parts of the country. ISIS may be unfamiliar, but they are very familiar to anyone who fought in or knows about the ongoing Syrian civil war. They can best be described as a combination of a few fragmented Islamic militant groups who have joined forces to improve their odds of actually making an impact in the regions they wish to control.
Iraqi security forces are having a tough time warding the rebels off and have found themselves, time and time again, outnumbered and out-armed by their ISIS foes. For this reason, the Iraqi government has called upon the United States to help militarily. The US recently responded by promising to send over a few hundred advisers and special operations troops.
As the violence in Iraq continues, the stability of the nation as a whole is being called into question more and more. As a result of the violence, safe-haven demand for precious metals has been seen making an impact on the spot values of gold and silver of late. Though today saw profit-taking outpace any gains made through safe-haven demand, the current belief of the marketplace is that gold and silver, at least for the time being, will continue to thrive off of any and all violence happening in Iraq and throughout the Middle East. We will continue to keep an eye on proceedings in Iraq as they will more than likely deteriorate further before they get any better.
