For the second consecutive day, gold and silver are posting decent gains. In fact, gold is swiftly approaching the $1,300 threshold, though I do not want to speak too soon. This week is expected to emit very little in the way of US economic data which means that investors will have few outside inputs to base any new investing decisions off of. The lighter batch of economic data this week will also likely help gold and silver maintain their current upward trends.
Janet Yellen, newly appointed head of the Federal Reserve, spoke in front of Congress today, delivering her first speech as the Federal Reserve's chairperson. Apart from Thursday's weekly jobless claims, it is unlikely that the few pieces of US economic data released this week will have any sort of real, lasting impact on the marketplace.
Yellen's Remarks Do Little to Change the Marketplace
During the lead-up to Ms. Yellen's remarks today, many investors were hoping that that her address would shed some sort of light on what the Fed plans on doing at their next policy meeting. In light of recently sub-par economic data, a growing number of analysts and investors are convinced that the Fed will have to taper its plans of tapering. Having reduced the monthly bond-buying initiative by $20 billion already, a lot of people fear that recently poor economic reports will evolve into a lasting trend if the Fed does not curb their reduction of easy money.
Unfortunately, however, what Janet Yellen had to say to Congress offered very little in the way of future monetary policy decisions, or lack thereof. Instead, Ms. Yellen's remarks did nothing more than remind us that even though the position of Federal Reserve chairperson has changed, we are not going to see a very different attitude as she has more or less echoed Bernanke's sentiments time and time again. Two other high-ranking officials from the Fed are also scheduled to speak today, though there is a slim chance that either address will translate into the market knowing any more details about the next FOMC policy meeting.
Early reports from China are saying that safe-haven demand for gold is on the rise, even after the Lunar New Year holiday has ended. As it stands, the current global outlook on precious metals is a positive one, the only question is whether or not the spot value of gold will continue to rise or if it will suffer setbacks in the near future.