Gold and silver spot values are improving through the first half of the day on Tuesday, fueled by some more risk-aversion as a result of rising tensions in Ukraine. While investors had their eyes on Europe to begin the day, things will more than likely be changing as the next few days progress. With a slew of economic data set to be made public from Wednesday to Friday, all eyes will be locked on the United States.
FOMC Meeting Kicks Off Busy Week
As opposed to what has been the case the last few weeks, this week will be bringing about a healthy amount of economic data from the United States. The most important happening of the week will come today and tomorrow in the form of the most recent FOMC meeting. While the meeting itself is important, investors will really be paying attention to what Fed Chair Janet Yellen has to say in her post-meeting address to media. As has been the case for the past few weeks, investors the world over will be hoping to hear some more information with regard to if and by how much the Fed plans on raising interest rates. Currently, the overriding belief is that interest rates in the US will be hiked sometime before next Spring, something that is causing precious metals investors to become wary. After all, higher interest rates in the US would undoubtedly be adversarial for precious metals.
In addition to this week’s FOMC meeting, investors are also anxiously awaiting the release of the second-quarter GDP report, scheduled for Wednesday. In the wake of recently upbeat economic data and equity market performances, investors are expecting the GDP figures to paint a picture of an improving US economy. Finally, rounding out the week is Friday US employment report for July. After last month’s figures shattered the expectations of almost everyone, most are expecting this month’s numbers to do the same.
In addition to all this focus on US economic data, investors will also be carefully monitoring the situations in Ukraine and Gaza in hopes of hearing about any further developments. Just today it was announced that the EU would be placing further economic sanctions on Russia in response to their involvement in Ukraine. With tensions between Russia and the West deteriorating by the day, there is no doubting that this situation will develop further before it makes its way out of the headlines. For now, at least, Ukrainian military personnel and pro-Russian fighters will continue to do battle throughout much of the Eastern half of the country.
