Gold and silver spot values are edging closer to the end of the day as well as edging higher after trading sideways for a majority of the morning. Investors are continuing to digest a statement released by the Federal Open Market Committee earlier today which said that the FOMC plans on continuing its course of tapering QE by $10 billion/month. This announcement was widely expected by the market and has currently had little to no impact. Now, investors are awaiting what Janet Yellen has to say in her address to the media, which is expected to take place at some point tomorrow.
Investors are also continuing to pay attention to the ongoing crisis in Ukraine. Russian natural gas provider, Gazprom, has refused to continue providing natural gas to Ukraine unless it will be paid for beforehand. Seeing as Ukraine is operating on little to no financial stability, most experts feel as though Gazprom’s demands will never be met. This situation, like the one in Iraq, is fueling safe-have demand for precious metals.
Situation In Iraq Worsens, Threatens Regional Stability
Over the last few weeks, investors have been paying attention to the outbreak of violence happening throughout northern Iraq. While at first, this situation was nothing more than a regional conflict, it has now captured the wider attention of the investing world and is one of the only things investors are paying attention to this week.
Just this morning it was announced that the militant group ISIS had seized control of a majority of Iraq’s largest oil refinery. This news sent the spot value of crude oil to multi-month highs as fears no spread with regard to the accessibility of any oil from Iraq. The United States recently announced that they will be providing some military assistance to Iraq, but many feel as though it is too little too late.
As this week wears on investors the world over will continue to closely analyze and monitor everything happening in the trouble-stricken Middle East. Should the violence in Iraq remain as intense and widespread as it is now, gold and silver spot values will likely only continue to benefit from the growing sense of risk-aversion displayed by the marketplace.