Market Overview: The precious metals markets are starting the week off mixed with gold slightly higher and silver slightly lower. The metals markets are seemingly awaiting further inputs and have not really been able to make a sustained move in either direction. Deutsche Bank will likely remain a center of focus for investors, with worries about the investment bank fueling some market volatility last week. Reports on Friday did suggest, however, that the bank was possibly looking at a much smaller fine than originally anticipated for subprime disclosure issues. This has not been confirmed as of yet, however, and the stock could remain vulnerable to headline risk and further selling.
Key Data Points: Investors will have plenty of data to chew on this week. Today, investors will get the latest readings on ISM Manufacturing Index, Construction Spending and Motor Vehicle Sales. The rest of the week will include the latest readings on MBA Mortgage Applications, ADP Employment Report, Factory Orders, ISM Non-Manufacturing Index, PMI Services Index and Friday’s Employment Situation Report.
Friday’s jobs report is is the biggest economic report of the week, and with a strong number could potentially end any debate about a December rate hike. On the other hand, if the jobs data is a big miss, the Fed could potentially rethink its position and possibly even delay another hike until next year.
Outside Markets: Stock index futures are slightly lower in early trade. Investors will be keeping their eyes and ears open for any further news about Deutsche Bank. Further signs of weakness for the bank could potentially send its shares even lower and could weigh heavily on global markets and investor sentiment.
Crude oil is moving slightly higher today as optimism about a production cut in November appears to be on the rise.
The dollar index is moving slightly higher in early action.
The Big Picture: Gold and silver remain within their trading ranges as neither the bulls or the bears have been able to make a sustained move up or down. Although the Fed and rates have largely dominated headlines in recent months, a December hike appears to be a foregone conclusion at this point and markets are looking for another catalyst. Deutsche Bank could potentially be a bullish catalyst for gold and silver, as worries over the health of the bank-or a run on the bank- could fuel significant global market volatility and drive buying in perceived safe haven assets such as gold, silver and other precious metals.