Gold and silver had positive weeks, though neither metal took part in any major movements. Chinese economic data as well as rising interest rates have caught the attention of investors this week as both stand the chance of pushing gold and silver spot values in one direction or another.

Now that the US government shutdown has officially passed, it comes time for all of the delayed economic reports to make their way out. The first of these reports was September’s jobs data, of which was weaker than expected. Though this data was taken into consideration by investors, the fact that it was more than two weeks delayed means people will only dwell on it for a short period of time.

China In the News

China made its way into the world economic spotlight for the first time in a few weeks thanks to rising short-term interest rates and on overheating housing market. The rising interest rates in China were of particular interest to investors because of the possible implications they have for precious metals. The growing belief holds that if short-term Chinese interest rates continue to rise, Chinese monetary officials will be forced to tighten their current policies. Any type of tightening to Chinese monetary policies will almost assuredly result in the decline of Chinese consumer demand. Seeing as the Asian giant is the world’s second-largest economy and a huge consumer of precious metals, any decline in their nation’s aggregate demand will not bode well for the spot values of precious metals.

China also made the news this week in the form of an increase in their nation’s manufacturing PMI. October’s reading jumped almost a whole point when compared to September’s which is a good sign that the Chinese economy is hitting on all cylinders at the moment. This news was a bullish underlying factor for precious metals. Finally, with the Asian holiday season soon to be upon us, it is expected that demand for gold will increase.

Dollar Declining Steadily

Ever since the government shutdown started at the beginning of the month, the US Dollar has had a difficult time doing anything other than decline. With many underlying factors pointing in the direction of a battered US economy, the near future is not looking positive for the greenback.

The euro, on the other hand, has been doing well thanks to the declining US Dollar. Despite some poor economic data being released in the latter stages of the week, the euro is still hovering at an almost 2-year high.