Though gold and silver’s decline, which began late last week, was still going strong on Monday, the early parts of Tuesday have seen the slide correct itself a little bit. Both metals were up from their opening position a little bit, but these numbers are more or less insignificant compared to the losses we witnessed last week. Financial and economic troubles that haunted the Chinese and general Asian marketplace on Monday have been seemingly settled or at least calmed down by the morning hours on Tuesday.
China Settling Down?
Only a day ago we were talking about the looming of a liquidity crunch in China, and only a day later that is already old news. The nation’s monetary officials, on Tuesday, announced that the liquidity crisis is under control and that the turbulent economic atmosphere that seemed to be on the verge of throwing the marketplace into a frenzy was only a temporary speed bump.
This is good news because investors and market watchers from around the world were beginning to get apprehensive about what the immediate future might hold for them if the world’s second largest economy were to go into a state of shock. This good news prompted Asian stocks to rebound a bit from their dismally low positions on Tuesday.
Other World News
In other news, many central banks from around the world have been announcing a lot less severe future tactics for their monetary policies. Unlike the US Federal Reserve, specifically Ben Bernanke, other countries have made announcements saying that their changes in monetary policy will not be nearly as aggressive as the potential ones facing the United States.
A major European paper quoted an Italian bank which alluded to the idea that the nation as a whole may need yet another bailout package sometime in the near future. This is not too surprising as the Italian economy is fading fast and its credit situation isn’t doing much better.
At the beginning of Tuesday the US Dollar was down a bit but this was more or less expected due to precious metals’ slightly better form. The US Dollar is still very much in the driving seat and it would not, at all, surprise the marketplace if it were to end today making more positive gains.
What Else to Watch For
There are a few economic reports due out in the United States today including a retail sales report, durable goods orders report, home price index, consumer confidence index, and the latest business survey.
With spot values of both gold and silver still very low, bargain hunters will once again be out in full force buying up metals online and at brick and mortar stores.