Precious metals are mixed to begin the day on Tuesday, but neither gold nor silver have moved too far from where they began the day. Being that this is a holiday week, things are slowing down considerably and trading volumes are lighter than normal. On top of that, the fact that it is a holiday week means that we will be dealt almost no markets-moving economic data.
With that said, however, investors have had plenty of information to focus on as we are currently in the midst of a busy, year-end market atmosphere. In fact, we do not have another full week of trading before year’s end, so there is bound to be a lot of activity packed into the next week or so of trading.
Russia Back in the Headlines
Though there isn’t much economic data for investors to contend with early this week, we did have an interesting report from Russia made public on Monday. According to a number of different sources, Russia has been adding to its gold holdings for the better part of the last year. The report went on to say that for the last 8 months, Russia has been adding massive quantities of gold to its holdings. The widespread belief is that the Kremlin is doing this in an effort to combat the declining ruble.
The report went on to say that Russia has now eclipsed the 38 million ounce mark for the first time ever. This news did not really have too much of an impact on the market, but was noteworthy because investors are constantly wondering what is going on with Russia’s central bank and their government.
As we look ahead to the rest of this short, holiday week, it is likely that there will be very little information for investors to mull over. Adding to that, next week will likely continue to be quiet as it is yet another holiday week. With the end of the year fast-approaching, most investors are simply holding their positions in order to make it into the new year and subsequently assess the current global economic atmosphere. For precious metals, it is looking like the end of the year cannot come soon enough as this week has already played host to some hefty losses. With a quieter market atmosphere expected through the next few days, I anticipate that metals will remain mostly stagnant.