Gold and Silver Outlook for January 11

by Trading NRG
+10.09%
Upside
13.76
Market
15.15
Trefis
ABX
Barrick Gold
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Submitted by Trading NRG as part of our contributors program.

The market sentiment seems to have shifted gear again as gold and silver bounced back and spiked on Thursday. The recent decision of the ECB to keep the interest rate unchanged along with the reassuring words of ECB President that EU might show signs of recovery during the year. This news may have contributed to the sharp rise in the Euro and commodities prices. U.S jobless claims rose by 4k to reach 371k. Will precious metals change course again and trade down? On today’s agenda: Great Britain Manufacturing Production, Canadian Trade Balance, U.S. Federal Budget Balance and American Trade Balance.

On Thursday, the price of gold spiked by 1.36% to $1,678; Silver price also rose by 2.22% to $30.89.

St. Deviation

During the month the volatility of gold has picked up compared to December while silver’s has declined: the standard deviations of gold and silver (daily percent changes) reached 1.06% and 1.76%, respectively.

On Today’s Agenda

American Trade Balance: This report will show the developments in imports and exports of goods and services to and from the U.S, including commodities; according to the recent American trade balance report regarding October the goods and services deficit rose during the month to $42.2 billion;

U.S. Federal Budget Balance: this upcoming publication will show the changes in the U.S federal balance for December 2012; this report indicates the government debt growth and thus may affect the U.S dollar. In the previous report regarding November the deficit grew by $172 billion to a deficit of $292 billion for the fiscal year of 2013. In comparison, the deficit in the same time in 2012 was $235 billion; this is an increase of 24% compared to 2012.

Great Britain Manufacturing Production: this report will present the yearly rate of GB’s manufacturing production for November; in the previous report regarding October the index decreased by 1.3% (M-2-M); this news may affect the British Pound;

Canadian Trade Balance: In November, exports increased by 1% and imports declined by 1.2%; as a result, the trade deficit contracted from a $1 billion deficit in September to $0.169 billion deficit in October; this report may affect the Canadian dollar which tends to be linked with precious metals;

For further reading:

Is the Big Gold Rally Behind Us?

Gold and Silver Outlook for January

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