Gold and silver spot values, through the first day and a half of this week, have edged higher and have broken through key points of technical resistance. After last week’s intense rally, spot gold is now up above $1,315 while spot silver is well over $21/ounce. It is clear to see that precious metals are in possession of a good deal of momentum at present, but how long can it last? The answer to that question is not at all a clear one, but many market experts and investors alike are under the impression that the precious metals rally is just beginning. As such, perceived bargain-hunting buying has made a major impact on the market this week, especially for a week that is both shortened by a holiday and on the giving end of very little economic data.

As was just mentioned, this week will end a day early for US investors as they take the day off in order to celebrate the Independence Day holiday. As a result of the holiday, June’s employment figures will be released on Thursday. Finally, the European Central Bank is also scheduled to meet Thursday in a meeting where a lot of people are looking for answers with regard to why inflation levels have not budged in the past two months.

Civil War In Iraq Calms But Is Far From Over

For the past two weeks or more, the civil war in Iraq has remained plastered to the daily headlines. As the Islamic militant group ISIS moved further southward towards the capital city of Baghdad, the world looked on in horror as a country that just got finished with a decade of war delved right back into violence. US military advisers are in the country providing assistance to decimated Iraqi security forces, but they have not seemed to do much in the way of helping quell the violence quite yet.

As the week and new month wear on, we will continue to keep an eye on the situation in Iraq as it has been a key factor for the precious metals market lately. So long as violence and uncertainty abound in the Middle East, safe-haven demand for gold and silver is expected to remain high. Add that to a USD Index that has been feeling a lot of pressure and you have a market that is currently perfect for gold and silver to make massive gains. Whether the gains continue or not remains to be seen, but many market experts are feeling optimistic about what the upcoming days and weeks have in store.