Precious metals finished the day on Tuesday mixed, but it was gold that posted losses for a second consecutive day. So far, this week has proven to be quite slow from an economic data standpoint. Yesterday gave us the consumer spending report for December for the United States and, though it was disappointing, it really didn't have too much of an impact on the marketplace. In addition, it was also reported that factory output in the US lagged during the last month of 2014.
As we look ahead to the rest of the week, all eyes will be on the price of crude oil as it has rebounded nicely since late last week. Though no one expects oil to move too much further forward, analysts are hoping this week will see oil set a price bottom investors can use to make future decisions. Up until now, the price of oil had been so erratic it was almost impossible to base any investing decisions off of.
Greece's New Parliament to Possibly Compromise with EU
The biggest news story of the day came in the form of a report claiming that Greece's new parliament and prime minister may be willing to talk to the EU about fixing its financial problems and government debt. This is big news because, up until today, the Greek parliament seemed dead-set on doing away with any bailout plans stemming from the EU. Though the situation is far from resolved, the fact that Greece is willing to play ball to some extent has translated into a massive surge forward for equities today.
For gold and silver, this is bad news as it adds a bit more stability to a marketplace that has otherwise been home to a lot of volatility recently.
Australian Central Bank Cuts Interest Rates
Another big news story today centered around the fact that Australia is the latest country to slash interest rates. This move was made in an effort to spur along the Australian economy by further devaluing the AUD. This move did not have an immediate impact on the wider global marketplace other than that it boosted the USD to a 5.5 year high against the USD.
As currency wars the likes of which we have been witnessing recently rage on, gold and silver are likely to benefit from the overall uncertainty that they breed. For today, however, precious metals did not really derive much of any benefit from the ACB's decision.