Despite the high volatility in the prices of gold and silver during last week, they remained nearly unchanged on a weekly scale. Gold and silver rallied after the holiday after the announcement that the U.S Senate and later Congress approved the tax hikes on wealthy households. By doing so, the U.S policymakers averted the fiscal cliff. The U.S officials will still have financials matters to tackle by February, including raising the debt ceiling, and spending cuts. On the other hand, the release of the minutes of the December FOMC meeting raised the speculations that the Fed might discontinue in the near future its asset purchase program. This report may have fueled the sharp drop in the prices of precious metals by the end of the week. Several U.S related reports were published during last week and may have also affected gold and silver: U.S non-farm payroll rose in December by 155k; the U.S jobless claims rose by 10k to reach 362k. Will gold and silver resume their downward trend? Here is a short outlook for January 7th to January 11th; this includes a fundamental analysis of the main report and events that may affect bullion including: U.S trade balance, ECB rate decision, EU unemployment rate, Canada’s trade balance, China’s new loans, Germany’s factory orders, Japan’s current accounts, China’s trade balance, and U.S. jobless claims.
In the video report herein provides an outlook of gold and silver that include the main publications and events that may affect precious metals during January 7th and January 11th. Some of these reports include:
Tuesday – German Factory Orders: This report will pertain to the shifts in the factory orders of Germany for November; in the previous report the German factory orders rose by 3.9%;
Thursday –Euro Rate Decision: Back in July the ECB decided to reduce its cash rate by 0.25pp to 0.75%. Since then, however, the speculations around another rate reduction were high. The ECB has ample reasons to cut the rate again: the economic situation in EU isn’t improving, the inflation and monetary development are still stable, and the Fed’s stimulus plan pressures up the Euro,. Thus, the ECB might decide to cut the rate by another 0.25pp in the near future. If ECB will cut the rate again;
Friday –American Trade Balance: according to the recent American trade balance report regarding October the goods and services deficit rose during the month to $42.2 billion.
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