The prices of precious metals slightly declined during last week. The volatility of precious metals has subsided during last week but might pick up in this week as the last FOMC meeting for the year will be held during this week. Last week several U.S reports were published and may have had a moderate effect on precious metals markets. These reports include: the manufacturing PMI declined below 50; the U.S jobless claims decreased by 25k; finally, the non-farm payroll report was better than many had expected as employment grew by 146k, even though previous months’ employment figures were revised down. Here is a short outlook for December 10th to 14th of the main publications and events that may affect precious metals including: FOMC meeting, EU Summit, U.S trade balance report, China’s new loans, U.S retail sales, U.S CPI and PPI, Canada’s trade balance, and U.S. jobless claims.
In the video report herein presents an outlook of gold and silver that include the main publications and events that may affect precious metals during December 10th to 14th. Some of these reports include:
Tuesday –American Trade Balance: This monthly report for October will show the recent changes in imports and exports of goods and services to and from the U.S, including commodities such as oil and natural gas; according to the previous American trade balance report regarding September the goods and services deficit declined during the month to $41.5 billion;
Wednesday – FOMC Meeting: in September’s FOMC meeting, the FOMC announced of the launch of QE3. Since then the FOMC didn’t update its monetary policy. The operation twist, in which the Fed extends the maturity of its assets, will end this month. This could suggest an update to this plan will unfold. Moreover, in light of the fiscal cliff, the low expectations of Congress reaching an agreement about the multi budget cuts, and the slow progress of the U.S economy, the Fed might decide to expand its current QE3 and include the purchase of other securities and not just mortgage backed securities.
In conclusion, I guess gold and silver will change direction and slightly rise. Moreover, the volatility might increase during the week as it entails many news items and events most notably the FOMC meeting. It will most likely come down to the decision of the FOMC. Many expect the Fed will decide to expand the monetary plan, due to the sluggish progress of the U.S economy and the little progress in the discussion in Congress regarding the austerity plans to avoid the fiscal cliff. Back in September the FOMC decision to launch QE3 had a short term effect on precious metals prices. Moreover, this launch seem to have had little effect (up to date) on the U.S economy as the inflation remained stable, the housing market is slowly expanding and the employment is also moderately rising. In any case, if the Fed will expand its monetary policy or even hint to the fact, this could pull up gold and silver, even if for the short term. Finally, if the Euro, Aussie dollar, Canadian dollar and other risk currencies will appreciate against the USD, they could also positively affect precious metals.
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