Gold and silver spot values are conceding value as of the writing of this post Wednesday morning, but this should come as no surprise considering how well US stocks as well as the US Dollar are doing. Unfortunately, due to this week being a holiday, things are much quieter and subdued than normal. As a result, the marketplace has become very quiet as investors are simply holding their positions until they receive the slew of year-end economic data that we will be dealt during the first few weeks of 2015.
As we look back on the past 12 months, I think most precious metals investors would agree that 2014 was a year they would like to quickly forget. With the US economy improving at seemingly every turn, the outlook on gold and silver has diminished to the point where safe-haven demand for metals is almost non-existent. Adding to the sour news is the fact that most experts expect the US economy to continue improving through 2015; something that definitely wouldn’t do gold and silver any favors.
US Stocks, Dollar Make Gains to Close Out Year
For yet another day, both the US Dollar and US equities are adding value. The greenback has been making gains against rival currencies all morning and is looking like it will end the week and year in positive fashion. For gold and silver, the fact that the US Dollar is performing so well is none too pleasant. As investors become more engulfed by currency and equity markets, their interest in gold and silver will naturally continue to diminish.
Putting the strength of the US Dollar and US equity markets in perspective is the fact that not even today’s sub-par weekly jobless claims report was able to put a dent in their progress. According to this morning’s report, the US saw nearly 300,000 people file for unemployment benefits last week. This is nearly 20,000 more people than the week before; something that is considered to be a significant increase. Perhaps we will see some delayed reaction on Friday, but with the marketplace expected to be particularly quiet, I really think the market will ignore this weekly jobless claims report.
As we look ahead to the next few weeks, you can expect that the marketplace will be dealt a good bit of economic data from all over the world. From the US in particular, investors will not only be awaiting the next FOMC meeting, but also a slew of year-end data. This, as you could have probably guessed, will help investors shape their investing decisions as we head further into 2015.