The prices of gold and silver also fell during last week. As the year is winding down and the concerns revolving the fiscal cliff might result in a rise in the volatility of precious metals. Furthermore, in the past couple of years the prices of gold and silver tended to shift with an unclear trend during the last week of the year. Will this unclear trend reappear? Last week, several U.S reports were published. These reports include: U.S GDP for Q3 2012 was revised up to a growth rate of 3%; the Philly Fed index bounced back in the December Survey; the U.S jobless claims rose by 17k to reach 361k. These news items may have affected precious metals during the week as most of the reports showed progress in the U.S economy. Here is a short forecast for December 24th to 28th; this includes a fundamental analysis of the main publications that may affect bullion such as: U.S consumer confidence report, U.S new and pending home sales, Bank of Japan minutes of monetary meeting, Italian bond auction, 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 December 24th to 28th. Some of these reports include:
- What Are China Telecom’s Business Units Worth Individually?
- How Different China Auto Sales Growth Rate Projections Impact GM?
- CVS Earnings: Strong Performance Driven by Acquisitions and Growth In Specialty Business
- How Does Ford’s Performance Vary Across Geographies?
- What’s The Upside For BlackBerry If It Doubles Its Handset Market Share?
- Why Is China Important For General Motors?
Thursday – U.S Consumer Confidence: according to the recent monthly report, the consumer confidence index increased again in October (M-o-M). The current expectations are that the December index may further rise;
Thursday – U.S. New Home Sales: in the previous report (for October), the sales of new homes slipped to an annual rate of 368,000 – a 0.3% drop (month over month); if the number of home sales will rally, it may indicate a sign of some recovery in the U.S real estate market which may also affect the strength of the USD;
In conclusion, I guess gold and silver will move with an unclear trend during the last week of the year. The ongoing debate between the White House and Congress could keep the market volatility high as they will try to avoid the fiscal cliff. The low trading volume could also be another factor that will result in an increase in price volatility. The FOMC decision to expand QE3 didn’t affect for now precious metals prices, but this could change in the weeks to follow. The upcoming reports regarding the U.S economy including: new and pending home sales, consumer confidence report and jobless claims, could affect the USD and commodities prices: if these reports will show progress in the U.S economy, they could pull back the prices of gold and silver. Finally, if the Euro, Aussie dollar, Canadian dollar and other risk currencies will appreciate against the USD, they could help rally precious metals.
For further reading: