Gold and silver both experienced some minor gains in the first half of Thursday thanks to a lower US Dollar Index. This week, thus far, has been one of few news stories which means that apart from the US Dollar there are few catalysts for major changes in the spot values of metals.
Yesterday we heard some mixed Purchasing Manager’s Index reports from China and the EU, one suggesting that economic contraction is a thing of the past while the other suggested that the given economy may have to deal with economic contraction for some time to come. As investors and their families are gearing up for their summer vacations towards the end of July and beginning of August, the world marketplace is likely going to be a lot more quiet than it had been recently.
China and European PMI Reports
Yesterday was a quiet day for the most part, but two Purchacing Manager’s Indexes caught the eyes and ears of investors everywhere. First up was the EU PMI report which actually indicated that for the first time in over a year and a half the European economy may no longer be feeling the effects of contraction. This was great news for Europe because the continent as a whole has simply been sputtering along as of late.
China’s PMI report, on the other hand, came back weaker than expected for June and indicated that the world’s second largest economy may be gearing up for some unwanted economic contraction. It is impossible to say, at this point, whether the Chinese economy will retain its position as second strongest in the world, though all signs are pointing at them falling off quite a bit towards the end of 2013.
Other World News
The US Dollar Index is the main thing that investors are going to be watching for the rest of the week. On Monday the US Dollar Index was down which gave gold and silver the room they needed to make some substantial moves forward. The next two days saw the USD Index pick up a little bit of value while today, Thursday, sees it back down again.
Whenever the US Dollar Index is down gold and silver almost always gain in value, and it is for this reason that investors will keep a keen eye on how it is doing. World stocks, for the most part, were also weaker in the beginning stages of Thursday, something that also helped precious metals out a bit.