Gold and silver spot values began the second half 0f 2014 in positive fashion today by adding to recent gains. Precious metals bulls have the clear technical advantage currently and are really beginning to flex their muscles. Metals have been on the up and up for the last four weeks and are not going anywhere anytime soon, or that's what some market experts think. Now, with momentum on its side, market experts are convinced that gold is now setting its sights on a spot price of $1,350. While the yellow metals is still a good bit of distance away from that mark, bargain-hunting buyers are out in full force to take advantage of a spot value that seems like it is only going to continue rising.
This week is generally expected to be a quiet one, but investors will continue to closely analyze all the major movers of the marketplace. The USD Index is trading slightly up today, but is still in fairly rough shape after its recent free fall. After trading in upwards of $81 less than a month ago, the greenback is now hovering below $79. The USD's recent run of form has been yet another factor helping precious metals in recent weeks.
Iraq Out of Headlines For Now, Trading Week Shortened
The ongoing civil war in Iraq is still far from resolved, but it has faded away from the forefront of the marketplace's attention. In general, violence in Iraq is much more subdued now than it was a week or two ago, but ISIS now has a firm stranglehold on much of northern Iraq. Despite widespread worries, crude oil exports from Iraq have thus far not been affected by the violence, but no one is counting on that remaining the case. As such, crude oil prices have been on the rise for the better part of the past 3 weeks or more. Despite the market not paying as close attention now as they were not too long ago, the civil war in Iraq will continue to be one of the primary concerns for many investors.
From an American trading perspective, this week is going to be a short one due to the celebration of the Independence Day holiday on Friday. The only major US economic report, June's employment data, will be released on Thursday as opposed to Friday. What's more, the European Central Bank is scheduled to hold their monthly policy meeting on Thursday. A report made public a day ago showed inflation levels remaining steady throughout the European Union; something that caused quite a stir amongst investors. It will be interesting to see if the ECB addresses continued worries with regard to deflation or if they will avoid the subject altogether.
This week may be a day shorter for most investors, but it is poised to bring about a lot of action from both economic and geopolitical standpoints.