In other news, this week and the end of last week have seen little to no activity out of Asian markets. The reason for this is due to the fact that the Lunar New Year is currently being celebrated across Asia and has investors away from work. As the celebration wraps up, you can expect a good quantity of data to come from Asia over the course of the coming weeks.

Yellen Addresses Congress for Two Days

Beginning on Tuesday and carrying over into today, Janet Yellen has been speaking to Congress about the US economy and all that goes into it. In summation, Yellen maintains that the US economy is doing extremely well and is well ahead of the pace of growth currently being exhibited by other global economies. She said all of this in light of the fact that the first two months’ worth of economic data from the US has been less than stellar.

In addition to speaking about the strength of the economy, Yellen also touched on the prospect of interest rate hikes. While it is a known fact that interest rate hikes are coming some time in the future for the United States, no one has any idea when those hikes will come. According to Yellen’s remarks, it doesn’t even seem as though she knows when rate hikes will ensue either. She stated that the topic of raising interest rates is something that will be carried over and discussed from meeting to meeting.

The language she used to describe the eventual hiking of interest rates favored the doves and in turn helped out precious metals spot values. With that being said, however, spot values were only given a small boost today and are still looking at weekly losses. With two days to go, it will be interesting to see how metals finish up the week. There will be some US economic data made public, including the weekly jobless claims report, but I do not think any of it will have a major impact on the global economy nor spot values.

In other news, stocks and the Dollar have been jumping around considerably all week long. Like metals, neither asset-class has moved too far from where it began the week, but that very well might change upon the release of the latest employment data. Another thing to pay attention to is the fact that crude oil has been on a rally of sorts since the end of last week. Will oil be able to keep climbing? Only time will tell.

Surprise Central Bank Decisions Catch Market Attention

On Tuesday, it was reported that the Australian Central Bank would be reducing its main interest rate in an effort to stimulate the Australian economy. In recent years, Australia has really fallen behind economically and is looking for pretty much anything to get itself back on track. Whether this move will finally jump start some growth for the island nation remains to be seen, but it did push the AUD to a 5.5 year low against the strong US Dollar. As the year moves forward, we will continue checking back with Australia to see how its economy is performing.

Finally, this morning brought about an announcement claiming that China’s central bank reduced the reserve requirement ratio for its domestic banks. This move, as you could have probably guessed, was made to spur economic growth in a country that has really struggled over the course of the past 12 months or so. As the world’s largest importer of raw commodities it is pretty easy to see why this news helped give gold and silver a bit of a boost.

Looking ahead to the end of the week, I expect most investors to hold their positions until the release of Friday’s employment report. Because this is the first such employment report of the year, investors will be paying very close attention to the figures that are made public.

For those who missed it, last week’s European Central Bank meeting saw the ECB introduce their bond-buying plan for the region. Though the ECB will not actually put the QE plans into action until early 2016, the announcement itself was welcomed with open arms by investors of all types. What was shocking, however, was that the ECB decided to implement 60 billion euros worth of bond purchases every month. Prior to the announcement, most investors were expecting to hear of a 50 billion euro plan, so the 60 billion euro announcement was surprising.

Corporate Earnings Fall Short of Expectations

This week has been much quieter than the last few, but there were plenty of corporate earnings reports due out throughout the first half of the week. Unfortunately, 2014 fourth quarter earnings reports have been far weaker than expected and have taken their toll on US equity markets. Generally speaking, equity markets have seen a lot of volatility recently and this has been keeping investors on edge.

As far as particular reports go, Caterpillar was a noted under-performer, having reported profits that were far short of what was expected. Citing a downturn in the mining industry, Cat said that orders for construction equipment are not coming in as readily as originally believed they would.

For Proctor and Gamble, a stronger US Dollar in recent months has translated into overseas earnings being devalued. This means that while the company is still performing well, its bottom line is being hurt by a continuously stronger US Dollar. For gold and silver, the fact that fourth quarter earnings from 2014 have been weaker than expected is translating into stronger safe-haven demand. In recent months, general demand for gold and silver has picked up and has seen spot values pulled up right along with it. Should the same sort of uncertainty continue to be present throughout the global marketplace, gold and silver will likely continue to benefit.

In other news this week, the Federal Open Market Committee is holding their monthly policy meeting for the month of January. Unfortunately, the FOMC meeting did not bring about any shift in policy and was so uneventful a post-meeting press conference did not occur. It is now generally agreed upon that interest rates here in the US will remain put throughout the 2015 calendar year.

Generally speaking, investors are becoming interested in precious metals simply because they are unsure what direction other markets will head in. It is generally agreed that crude oil’s value will continue to plummet, and with this recently hurting stocks, it is easy to see why so many investors are ditching their shares in search of safe-haven precious metals. As the week plays out, it will be interesting to see if gold and silver can retain or possibly even build upon these gains, or if a corrective pullback is in the cards.

Poor Retail Sales Report Affects Dollar, Stocks Negatively

For yet another day, stocks in the US and around the world suffered due to the combination of falling oil prices and a poor retail sales report from the United States. Though crude oil is not falling at a very rapid pace, the black gold is still hovering around a 6-year low and this is enough to doom most energy stocks. So far this week, energy shares have led the dive and are a major contributing factor to overall stock market losses.

According to a report released earlier in the day, retail sales in December fell by almost a whole percentage point on an annualized basis. This was shocking considering most were expecting retail sales to increase as a result of the holiday season. Because of this, the US Dollar backed off from recent highs today. Generally speaking, however, the USD is still performing extremely well through the first few weeks of 2015. Against the Euro particularly, the greenback is near a decade-high and is expected to continue performing well as the European Union is reportedly on the verge of receiving even more easy money.

With the European Central Bank expected to meet for their monthly meeting on the 22nd of this month, you can bet that investors will be paying close attention to anything and everything said. As it stands, however, most investors are convinced that we will hear some news regarding a bond-buying program being introduced to the region in the near future. If this does prove to be the case, the Euro very well might lose even more value throughout this year.

Looking ahead to the duration of the week, many of the same factors will be there for investors to discuss and mull over. There is still plenty of economic data on the table, and with some important central bank meetings on the horizon, there is ample information for investors to preoccupy themselves with.

Stocks Fall On Global Economic Concerns

A theme through the first few days of this week has been the decline of global equity markets, but most notably those in Europe and the United States. Thanks to crude oil being on the decline, energy shares have dipped considerably. For a point in time on Monday, the value of crude oil dipped below $50/barrel, and this caused the marketplace to delve into a sort of panic. Stock sell-offs ensued and this was enough to drive spot values of precious metals forward.

The concerns of investors extend far deeper than the momentary movement of crude oil to under $50/barrel. Investors really fear that the continued decline of crude oil’s value will, in time, cause severe price deflation for people all over the world. For this reason, gold and silver spot values shot forward due to the renewal of safe-haven demand on the part of investors. So long as the market is concerned about the future of the global economy, it is likely that spot values of precious metals will appreciate.

Holding metals back today, however, is a US Dollar that is continuing to surge forward. For the better part of the last 5 or 6 months, the USD has been making almost consistent gains against rival currencies. In recent days, the USD has made massive gains against the Euro currency and is expected to continue doing that as the weeks move forward. This is especially true due to the widespread belief that the European Central Bank, at their upcoming meeting, will announce the implementation of a government bond-buying program similar to the Quantitative Easing we saw in the United States over the last few years.

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.

Though the early parts of this week have been mostly quiet, we were dealt some economic data that was of particular importance to investors. Apart from this one piece of economic data, however, there really hasn’t been much for investors to talk about. As we approach the end of 2014, many investors are simply holding their positions and awaiting the plethora of economic data that will be dealt during the first few weeks of January. Unfortunately for gold and silver, even though they are not doing too much moving, what movement is happening is mostly in the downward direction.

3rd-Quarter GDP Data Revised Upward

Even though this is a holiday week and one that is generally devoid of markets-moving economic data, markets-moving economic data is exactly what we received on Tuesday. According to a US Commerce Department report, US 3rd-quarter GDP was revised upward from having grown a little more than 3%, to having grown by 5%. Of course, these growth readings are on an annualized basis, but this was quite the revision, especially considering that the original data was nothing to scoff at.

The report went on to say that an increase in consumer spending and more business investment were major factors behind the July-September US economic surge. As you probably could have guessed, yesterday’s revision only worked to boost equities both in the US and abroad. In addition to this, the US Dollar spiked in the wake of the GDP revision.

As we look ahead to the rest of the week, it is highly likely that things will remain quiet and subdued due to the fact that the Christmas holiday is tomorrow. In fact, I expect that a majority of the next two weeks will be more on the quiet side of things as investors are content to hold their positions until the New Year arrives. Gold and silver are also poised to stay mostly put, but with the market being as bearish as this current one is, I would not at all be surprised to see some modest losses pile up between now and next Friday.

Another major focus for the market this week is the slump currently being experienced by the Russian economy. Due to a combination of Western sanctions and falling crude oil prices, the Russian ruble has lost more than 50% of its value this year and is continuing to decline. Just yesterday, the central bank of Russia decided to raise interest rates in an emergency move to combat the declining ruble. With Putin so eagerly flexing his military muscle in recent months, some worry that he may lash out as a result of his failing economy. This, of course, is mere speculation, but it is definitely something investors should be paying attention to.

FOMC Post-Meeting Press Conference Awaited

Every time the FOMC meets for their monthly meeting, the marketplace perks up and pays particularly close attention. In recent months, this has never been truer as investors from around the world are clamoring to be the first to receive word of the next US monetary policy shift. On the slate for this meeting is the expectation that the Fed will unearth its plans for raising interest rates.

For the last half year or more, investors from the United States and abroad have enamored themselves with speculation regarding when interest rates will be raised, and by how much they will be raised by. Countless rumors have come to fruition as a result of all this speculation, but up to this point, almost none of them have had any real basis in reality.

This time around, speculation holds that the FOMC will finally announce when interest rate hikes can be expected as well as how much rates will be hiked by. For this reason, you are currently witnessing a market that is wholly preoccupied with what this afternoon will bring. All eyes and ears will be on the FOMC’s post-meeting press conference, as that is usually the place where a bulk of the meeting’s contents are divulged.

In addition to the FOMC meeting, investors have also concerned themselves with the price action of crude oil, but to be honest, most things have taken a back seat to all this FOMC talk. Perhaps as this afternoon comes and goes, the attention of investors will be more evenly spread across the global marketplace.

As surprising as it is, the market has not really had much of a reaction to terrorist attacks that have taken place in Australia and Pakistan over the course of the past few days. Though more than likely isolated incidents, the market usually becomes on-edge whenever an attack occurs.

As it stands now, gold is sitting comfortably above $1,200/oz while silver has finally, once again eclipsed the $17 threshold. Though these spot values are nice, they are still a far cry from where we were a few months ago and still considered to be at bargain levels. This, coupled with safe-haven demand, is sure to keep the physical purchases of gold and silver continuing to be on the up and up.

Crude Oil, Global Equities Take Center Stage

As you my or may not know, investors find plenty of information to latch on to, even in the midst of an absence of markets-moving economic data. This week, the price action of crude oil caught the attention of investors yet again, simply because prices continue to falter. As it stands now, crude oil is hovering near a 5-year low and is not looking like it is going to improve any time soon.

At first, the downward shift of crude oil was not all that alarming simply because most people assumed that oil’s spot value would quickly correct itself. Now, however, we come to realize that crude oil may be doomed to remain at current price levels because of the injection of US-supplied crude oil hitting the market. Now, there exists a global supply glut that is currently driving down the price of US-supplied oil.

In addition to this, the fact that US oil is coming from a country that is not affected by wars eliminates the existence of something called a war premium. In the past, so-called war premiums had the power to drive up the cost of a single barrel of oil by up to 25%.

Now that oil has stopped acting as a weight on the value of gold and silver, it will be interesting to see if safe-haven demand and bargain-hunting is enough to keep spot value propped up.

Despite losing a good amount of value towards the end of last week, precious metals opened up things on Monday in impressive fashion. Unfortunately, Tuesday saw some of those gains parred as a stronger Dollar and stronger US equities took their toll on the precious metals market. In addition to the ECB meeting expected to be held tomorrow, the market will continue to focus on the spot value of crude oil as it will continue to have a direct impact on the price of gold and silver.

European Central Bank Meeting Takes Center Stage

Like was previously stated, there is no denying that the week’s marquis event will come tomorrow in the form of the next European Central Bank policy meeting. The ECB’s monthly meeting is always watched closely by investors, but this time is different due to the fact that so many people are expecting to hear of a shift in policy. Judging by recent comments made by ECB president Mario Draghi, it is widely expected that the EU will be subjected to QE measures instituted by the European Central Bank.

For those who are unaware, QE is nothing more than the purchase of government bonds aimed at stimulating an economy. In the US, QE measures were credited with playing a major role in the recovery of the US economy. If the ECB does announce the implementation of QE measures, I would be willing to bet that the Euro currency will decline in value. As such, the US Dollar is likely to gain value too, and this would be none too favorable for precious metals. Still, there is no guaranteeing that the ECB will make any shift in policy at this month’s meeting. Because of that, the global marketplace will be paying especially close attention to anything and everything the ECB has to say.