After posting some modest losses on Monday, both gold and silver made up for them by coming out Tuesday and more or less regaining everything they lost to start the week. Some shaky Asian currencies, as well as the upcoming release of the US Federal Reserve's Open Market Committee's minutes for their September meeting are the stories catching everyone's attention on Tuesday.
Also worth paying attention to is the ongoing violence in Egypt as the death toll continues to mount in the wake of more and more protester clashes with police forces. Now, the US has announced that they will likely retract their commitment to supplying Egypt with weapons, a decision that was quickly undermined by Saudi Arabia's announcement of support for Egypt. Saudi Arabia announced that if the US were to pull-out from supporting Egypt via weapons, they would fill in. The large Arab country is a huge backer of the Muslim Brotherhood and is showing the world this by making such an announcement.
Investors are going to want to watch the ongoing situation in Egypt closely as it seems as though it is far from concluding.
Worrisome Asian Currencies
Last week there was not much talk about anything besides the surging spot values of both gold and silver. Both metals were making such gains that investors were wholly turned off to the idea of paying attention to other stories. Going on at the same time as precious metals' rise, however, was the rapid decline of India's currency, known as the Rupee. In fact, even though many investors refused to recognize that this event was going on, most market experts agree that the fall of the Rupee was the main catalyst behind the rise in value posted by gold and silver.
Now, as the Rupee continues to decline in value, the Indonesian Rupiah joins it. Both currencies are declining rapidly and, thanks to higher interest rates around the world but especially in Asia, the decline of these currencies is not looking like it is going to end any time soon. We will also keep our attention focused on this news story as it develops further, though, thus far, it has helped boost gold and silvers' prospects as safe-haven assets; much like the ongoing violence in Egypt has.
Upcoming FOMC Minutes
There have been few weeks where we can escape hearing about the Federal Reserve and/or the Federal Open Market Committee, and this week is no different. Due to Wednesday's scheduled release of the FOMC's upcoming meeting's minutes, the marketplace will once again fixate its attention on the US Federal Reserve.
Investors are hoping that the minutes shed some light on the future of monetary policy in the US, though many are not holding their breath.
Despite a slow end of August, gold and silver have been faring very well as physical demand for gold and silver is currently on the rise. Only time will tell if both metals are able to sustain their positive runs, though early indications are pointing towards a very profitable month come the end of August.