A day after citizens of the United States took the work day off to celebrate the Memorial Day holiday, gold and silver fell as soon as the day started. Even before US markets opened gold and silver were declining in value and as of a little past 9 AM gold was down over ten dollars while silver's losses were edging closer to thirty cents. A healthy slate of economic news is set to be released in the US on Tuesday and will likely give us decent perspective on how the American economy is doing in the early parts of 2013. In addition to the US economic news being announced on Tuesday, investors will keep their eyes on world currencies and stock markets as lots of things are either happening or expected to happen soon in that department.
United States Economic Data
With the Federal Reserve of the United States seriously discussing putting an end to the easy money policy known as Quantitative Easing, investors of all types have taken a new, more invested interest in everything stemming from the US. A great opportunity for investors to watch and speculate over the future of the US economy and its monetary policy will be today as three key economic indexes are going to be announced. These three economic reports are the manufacturing index, housing price index, and consumer confidence index.
Investors always pay close attention to these types of stories but as we said before, the seemingly imminent end of QE will cause an increase in investor interest in the stories. Add this to the fact that there really are not too many other important, market relevant stories to talk about in the early part of the week, investors will likely fixate their attention on these economic indexes more than just about anything else.
Other World News
Elsewhere around the world there is really not all that much to talk about. Besides the fact that European and Asian stock markets are doing better in the early part of this week than they were at the end of the last one, precious metals market watchers have had a fairly quiet Monday and beginning of Tuesday. Firmer stock markets did a good job of weakening gold and silver as gold fell by over ten dollars to start the day Tuesday and silver fell by nearly 30 cents.
A board member of the European Central Bank, Joerg Asmussen, announced that the bank will press forward with easy money policy until the continent-wide economy has recovered significantly from where it is at now. While the US is in talk of ending their easy money policies, most of the rest of the world is just starting up or in the middle of incredibly aggressive monetary policies. While these overly aggressive monetary policies are working as of now, many experts are skeptical about the prospects of any sort of long-term success, though time will reveal if being this aggressive is going to pay off or not.