After a stagnant Monday, a lot of folks were still feeling confident that this week could be a good one for precious metals. Part of the reason Monday was so slow was due to a public holiday that was being celebrated by mostly all of Europe. In the overnight and early morning hours on Tuesday, however, an Australian rates cut, pushed gold’s value downward by about 15 dollars. It is still early in the week which means gold has a great chance of making a comeback, but things are not looking good so far.

Australian Rates Slashed

Recurring themes are everywhere in the world markets as of late, and this time it is the recurring theme of interest rate cutting. No more than a week after the whole of the European Union saw interest rates cut by a quarter of a percentage point. Australia saw their rates cut by 25 basis points.

Even though this slashing of rates has caused the price of gold to take a momentary dip in value, experts believe that the slew of countries employing easy monetary will help keep physical gold in high demand. Whenever paper money can be found in abundance, it usually means that precious metals like silver and gold are sought after heavily. If this remains the case, it seems as though it is only a matter of time before gold and silver values rebound to what they were at the beginning of April.

Indian Holiday on the Horizon

Physical demand for gold is still high in many parts of Asia, but especially in India. The reason for this, many believe, is the Akshaya Trithiya holiday which is going to be celebrated in a matter of about 6 days. The Hindus who celebrate this holiday give gold as a gift more times than not as it is away to give a friend or family member a lasting source of wealth.

What Else to Watch For

Today, one thing many investors will be keeping their eyes on is a US Labor Department report on just how many jobs were made available this past March. The report will likely be a positive one as a report on unemployment data that was released last Friday indicated that there were far fewer unemployment claims than anyone had anticipated.

Good news for the economy, however, could mean bad things for the value of gold because whenever an economy is flourishing, safe-haven demand for gold typically declines. Only time will tell if gold and silver can rebound from these overnight and early morning dips in value.