Gold and silver are trading slightly down on Wednesday due to a technical correction. Investors are mostly holding their positions until the release of the latest FOMC minutes, expected to be released later this afternoon. The market is still trying to wrap their collective heads around last week’s employment report, of which came back weaker than expected yet again.
There have been reports streaming in claiming that unrest throughout Ukraine is on the rise in the form of pro-Russian demonstrations. Though Ukrainian security forces are doing a good job of keeping these demonstrations under control, there is a growing fear that Ukraine may slip into a civil war of sorts. That type of situation is still just a rumor at this point, but it is enough to cause investors to pay attention to anything and everything coming from Ukraine in the form of news.
FOMC Minutes Patiently Awaited By Investors
Though there were seemingly countless economic reports on the slate last week, none was more heavily anticipated than the US non-farm payrolls data from March. After high-ranking members of the Fed very recently touted the growing strength of the US employment sector, the market was expecting to see payroll growth of more than 205,000 from last month. Unfortunately, however, the actual figures showed that payrolls grew by only about 192,000 in March. This report caused safe-haven demand for gold and silver to spike while simultaneously put immense pressure on US equities.
As a result of last week’s sub-par employment data, investors will be more heavily relying on today’s FOMC minutes to give them some insight into the strength of the US economy. The FOMC minutes released over the past few months have been huge market-movers and will probably be just about the same this time around.
In other news, the IMF this week announced revisions to its economic growth forecasts for the duration of 2014 and 2015. To many people’s surprise, the IMF stated that they believe the UK will lead the way in economic growth over the next two years. According to the IMF, the UK economy is expected to grow by more than 2.5% in each of the next few years. The report wasn’t all about the UK, however, as it also labelled the US as being a critical factor to global economic growth.