In stark contrast to what we saw last week, the early part of this week are fairly quiet and devoid of any major economic activity. With that said, yesterday did bring about some fresh US housing data, of which fell short of expectations and temporarily put a halt to the progress being made by US equities and the US Dollar. Today saw investors continue to focus on equity markets, but with fresh violence in the Middle East, precious metals were given a bit of a safe-haven boost.
As we head into the latter stages of this week, I anticipate that investor attention will be all over the place. There is going to be a constant focus on US equities, but the market now has to consider the fact that geopolitics may now be playing ball once again. Though it is unclear how the next few days will pan out for gold and silver, it is clear that we will have plenty to mull over and discuss.
US Airstrikes In Syria Begin
If you can remember back to about two weeks ago, you likely recall the televised announcement made by US president Barack Obama with regard to the United States' involvement in the fight against ISIS militants. In his remarks, President Obama made it clear that while no US military ground forces would be involved in the fight, the use of air power was almost unrestricted. While this news was none too surprising, it was somewhat of a shock to hear Obama claim that airstrikes in Syria would be a part of the overall mission.
Yesterday, the United States' use of air power against ISIS strongholds in Syria began. Through the use of helicopters, drones, bombers, and cruise missiles, coalition forces destroyed a number of key locations throughout Syria. As a result of this news, markets opened today exhibiting a much keener risk-averse attitude. As you probably could have guessed, the growing aversion to risk managed to give precious metals a bit of a boost today. Though the violence in Syria will not be enough to help gold and silver sustain an elongated move upward, it will, if nothing else, provide just a bit of underlying, safe-haven support.
As we head into Wednesday and Thursday, I expect the market to continue focusing on the events in the Middle East. What's more, it is also expected that Russian president Vladimir Putin will respond to the United States' use of military force in Syria in some way or another. All of this is important to investors and will be closely considered by the wider global marketplace.