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    JM Bullion Weekly Market Preview (2/6/17)

    Market Overview: Both silver and gold are seeing some solid buying interest today as stocks move slightly lower and a degree of risk aversion sets in. Investors will have little economic data to digest this week, and their focus is likely to remain on the Trump administration and headlines. The recent immigration ban was halted on Friday by a federal judge, and a Justice Department appeal was denied over the weekend. The legal battle surrounding this issue is set to continue, and could potentially fuel further risk aversion.

    Key Data Points: There are no major economic reports set for release today. Markets are, however, still digesting last week’s jobs report and FOMC meeting. Although the jobs report came in much better than expected, the slow wage growth contained in the report appears to be a source of concern. Slow wage growth could potentially keep the Fed to a slower pace of further rate hikes than originally anticipated.

    Speaking of the Fed, the central bank took no action last week, and left rates as is. The central bank may want to see fiscal spending plans before hiking rates further, and while a March hike is a possibility, June seems to be the most likely time frame for further tightening form the Fed.

    Outside Markets: Stocks are slightly lower in early action today while interest rates decline and the dollar gains ground. The dollar index remains far from the post-election highs, and is still showing signs of a top being made. Stocks are not far from recent highs, but headline risks may be on the rise and stocks could potentially be vulnerable to a significant sell -off.

    The Big Picture: Thus far, the Trump administration is doing what it said it would do on the campaign trail. Things are not, however, going as smoothly as hoped. The legal battle over the immigration ban is set to continue, and some lawmakers are questioning recent comments made by Trump comparing the U.S. to Russia.

    It seems that some of the biggest allies of the U.S. are also questioning Trump policies and rhetoric, and the potential for a significant international misstep exists.

    Gold and silver may continue to see further buying on risk aversion, and could potentially trend higher in spite of stronger stocks or a stronger dollar index. On the other hand, stocks could potentially be reaching a breaking point, and the dollar could possibly trend lower from current levels. Weaker stocks and a weaker dollar could also potentially fuel more buying in gold, silver and other perceived safe haven assets.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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