Precious metals bounced around a bit today, but by the time markets closed they were able to add a bit of value. While the end of the day sees things in decent standing, the middle parts of Tuesday saw gold's spot value dip to a 7-week low. The last few weeks have been quite brutal for gold and silver, and it is not looking like things will improve anytime soon. Not helping matters at all is the fact that there is a very light amount of economic data due out this week.
As we look ahead to next week, I anticipate that the economic data situation will change entirely. Because this is the last full week of February trading, you can bet that month-end economic data will be coming fast and heavy through much of next week. This much is sure to affect precious metals in some way or another going forward.
Yellen Addresses Congress: Day 1
Today marked the first of two days' worth of testimony to Congress made by Federal Reserve chairperson Janet Yellen. Today, Yellen explained that while the US economy is still improving, the Fed is in no rush to raise interest rates. Instead, Yellen said that the interest rate discussion will take place on a "meeting-to-meeting" basis, which means that investors were given little to no new information regarding rate hikes.
In the end, Yellen's remarks today were not deemed to be overly dovish nor hawkish. Thanks to this, markets did not really have much of a reaction. Tomorrow Yellen will address a US House panel, and her remarks will once again be hawked over by investors. In all reality though, she will likely not stray too far tomorrow from her remarks today.
In other news, it is being reported that Greece and EU finance ministers are beginning to see eye to eye regarding the debt reduction measures needed to be taken and the economic reforms that need to happen in order for Greece to be eligible for further EU-funded assistance. The market's focus on Greece has calmed down for now, but is liable to pick back up sometime in the near future. For this reason, we will continue to closely monitor what is happening in Greece and across Europe.