Gold and Silver Outlook for January 2
Submitted by Trading NRG as part of our contributors program.
The prices of gold and silver rallied on Monday. Will this rally continue? The recent news from the U.S is that the fiscal cliff was averted. This news received the final confirmation as Congress approved the plan to increase taxes on household making over $400k per year. Despite this new, President Obama will still need to augment the debt ceiling in February – it currently stands on $16.4 billion. This is another uncertainty that could contribute to the market volatility in the weeks to follow. In the meantime, the financial market might start the day on a positive note as this last minute voting in the Senate brought some unexpected optimism. But will this rally be short lived? According to a recent report, China Manufacturing PMI rose again and reached 50.6 as of December. On today’s agenda: U.S manufacturing PMI along with PMI reports of France, GB and Spain.
On Monday, the price of gold hiked by 1.2% to $1,674.8; Silver price also rose by 0.85% to $30.17. During the month, gold slipped by 2.11%; silver, by 9.13%.
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The gold and silver futures volumes have slightly changed on Monday to 96 thousand and 20 thousand, respectively. These numbers are lower than the volume traded a couple of weeks back. If the volume will remain low today, this could suggest the odds of sudden sharp shifts in the prices of gold and silver due to low volume will rise.
On Today’s Agenda
U.S. Manufacturing PMI: During November 2012 the index declined to 49.5%, which means the manufacturing is contracting; this index may affect foreign exchange rates, and precious metals markets;
Spain and Italy’s Manufacturing PMI: During November the index reached 45.3% and 45.1%, respectively. These data suggest the manufacturing is still contracting in these economies;
GB Manufacturing PMI: This report will refer to Great Britain’s manufacturing sector in December. In November the index rose to 49.1%. This rate means the manufacturing sector is contracting at a moderately slower pace; this index might affect GB Pound, which tends to be linked with commodities;
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