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The precious metals markets closed higher on the day but still maintained a loss over this week, with gold giving up 1.9% of its value. This was in response to a report given to Congress by Federal Reserve chairman Ben Bernanke. In his report to Congress the Fed chairman held any imminent action close to his chest. The net result was lower prices across the board in precious metals
The global economic conditions currently impacting the precious metals markets have not improved, and if anything are continuing to worsen. The European Union's debt crisis deepened as we saw Spain's credit rating lowered and other central banks needing an infusion of capital in order to maintain their solvency. The Greek government is still without leadership - citizens will return to the ballot box on June 17. That election is being watched worldwide and its outcome could greatly influence the future of Greece as a member of the European Union.
Weak economic data coming out of China along with current European Union issues could very easily have a major impact on the precious metals markets next week.
It is my opinion that it is not if, but when, we will see additional loosening of monetary policies by both the Federal Reserve as well as the European central banks. It is simply a matter of how much stimulus will be implemented..
Until such action begins the precious metals markets could easily maintain its current status of trading within a range.
As always, I wish you good trading,
