Gold and silver spot values ended the first day of the week posting mixed results, but really didn't move too far from where they opened on Monday. As of the writing of this post early Tuesday AM, both gold and silver are being seen appreciating a bit, but are really not doing much moving at all. With the Thanksgiving Holiday set to take place on Thursday in the United States, it should come as no surprise that this will be a slow, short week of trading.
With that said, however, there will be a number of global cues for the market to pay attention to. Whether these cues have any real impact on the precious metals market remains to be seen. Perhaps the biggest event of the week will come on Thursday in the form of OPEC latest meeting. With the value of crude oil still hovering near a 3-year low, it is thought that OPEC needs to do something in order to rectify recent losses. If nothing is done, there is a threat that the price of crude oil could decline even further.
OECD Claims Europe's Struggles Behind Lagging Global Economy
The OECD, a major economic organization, released a statement earlier today claiming that the slow growth rate of European economies is currently putting a damper on overall global economic growth. In order to fix this, the OECD says, European governments are urged to increase their spending dramatically. With the last 12 months bringing about nothing more than slow, slow economic growth in Europe, the OECD went on to say that the EU stands the chance of remaining in their current state of stagnation if nothing is done to fix the bloc's ailing economies.
With Mario Draghi, ECB president, recently making comments regarding the possible implementation of quantitative easing measures, more government spending may be exactly what Europe sees in the coming days and weeks. The next European Central Bank meeting is just around the corner and, at this point, many people are anticipating that some sort of shift in policy will come as a result.
To be fair, the marketplace isn't very concerned with things that aren't Europe and Asia's economic struggles at present. Though there is no guaranteeing that policy shifts will come as a result of the upcoming European Central Bank meeting, the market seems to be convinced that that is exactly what will happen in the coming days and weeks.