Gold and silver are trading marginally lower today, mostly thanks to a technical correction as well as some mild profit-taking by investors. Despite today's small losses by both gold and silver, the precious metals bulls are very much in control and will be for the foreseeable future so it seems. Gold and silver have not seen demand like this for months and are taking full advantage of the favorable outlook the market is developing towards them.
As was the case a week ago, this week too will be fairly light as far as economic data is concerned. Due to this, there will be few opportunities for other assets to really compete with the surging metals.
Interest In Safe-haven Gold and Silver On the Rise
Apart from a weaker USD index halting precious metals' losses today, there really wasn't much bullish data on the slate for precious metals. With that being said, however, the overall performance of raw commodities is and has been picking up considerably. Over the course of the past few weeks, metals and crude oil have seen values pick up to levels unseen in months. While at first, the momentum being built by commodities was attributed to nothing more than a fluke run of form, now it is becoming clear that commodities are here to stay.
Adding to the recent successes of gold and silver is the fact that investor interest in equities is on the decline. Recent US stock sell-offs are a clear sign to many that the US stock markets may have finally ran out of gas. Stocks continuing to trade lower will only serve to help gold and silver as we head further into 2014.
Thus far this year gold is up over $100 an ounce while silver has gained well over $2.
In other news from around the world, the Bank of Japan made a move to shift their stimulus policy today. The shift sees Japanese banks given incentives to lend more money to people and businesses. This news helped the Japanese Nikkei Index but worked to hurt the Yen currency.