Gold and Silver Outlook for January 17
Submitted by Trading NRG as part of our contributors program.
The prices of gold and silver remained virtually unchanged yesterday. In the U.S the debate over raising the debt ceiling continues and is likely to affect the financial markets in the weeks to follow. The U.S CPI remained unchanged during December, according to the recent CPI report. The core CPI edged up by 0.1% to a 1.9% growth in the past twelve months. In EU the annual inflation also remained unchanged at 2.2%. In the U.S, the net foreign acquisitions of long and short securities reached a net TIC inflow of $27.8 billion during November. This news suggests the demand for U.S securities remains robust. Will gold and silver resume their downward trend? On today’s agenda: French 10 Year Bond Auction, ECB Monthly Bulletin, Spanish 10 Year Bond Auction, U.S. Jobless Claims, U.S. Housing Starts & Building permits, Philly Fed Manufacturing Index, and China Fourth Quarter GDP 2012.
On Wednesday, the price of gold edged down by 0.04% to $1,683.2; Silver price inched up by 0.05% to $31.52. During January, gold rose by 0.5%; silver, by 4.45%.
- Barrick Stock Trades Below Intrinsic Value Despite Firm Gold Prices And A Strong Production Outlook
- Why Barrick Stock Is Underperforming Despite Strong Gold Prices
- Will Barrick Gold Stock Recover From The Sell Off?
- With Gold Prices Firming, Is Barrick Gold Stock A Buy?
- Soaring Yields Hit Barrick Gold Stock. Is This An Opportunity To Buy?
- Should You Buy Barrick Gold Stock As Copper Production Soars?
As seen below, the chart presents the changes in the normalized prices of precious metals during the month (normalized to 100 as of December 30th). During recent weeks silver and gold had an unclear trend.
On Today’s Agenda
U.S. Jobless Claims Weekly Report: this report will pertain to the weekly shifts in the initial jobless claims for the week ending on January 11th; in the previous report the jobless claims rose by 4k to reach 371k; this upcoming weekly report may affect the U.S dollar and consequently commodities;
U.S. Housing Starts: the U.S Census Bureau will publish its U.S housing starts update for December 2012; this report was historically linked with gold price – as housing starts decline, gold prices tended to rise the following day (even when controlling to the U.S dollar effect); in the previous monthly report, the adjusted annual rate reached 861,000 in November 2012, which was 3% below October’s rate;
Philly Fed Manufacturing Index: This monthly survey shows an estimate for the progress of the US manufacturing conditions. In the latest December survey, the growth rate rose from -10.7 in November to +8.1 in December. If the index will continue to rise it may positively affect precious metals (the previous Philly Fed review);
China Fourth Quarter GDP 2012: during the third quarter of 2012, China grew by only 7.4% in annual terms; the current expectations are that the Q4 2012 grew in annul terms by a higher pace than in the previous quarter; if the growth rate will be higher than in the previous quarter it might positively affect commodities prices;
For further reading: