Gold and Silver Forecast for January 7th

The prices of gold and silver slowly rose during the part several days. The low volume of trade may have contributed to the recovery of gold and silver. This could change in the coming days as the volume is likely to pick up. The main evens of the week are the U.S non-farm payroll report and minutes of the FOMC meeting. These two news items could affect the prices of precious metals. On today’s agenda: EU CPI Flash Estimate, American Australian and Canadian Trade Balance.                        

On Monday, gold inched down by 0.05% to $1,238; Silver, by 0.52% to $20.10. During January, gold rose by 2.97%; silver, by 3.92%. The ratio between the two precious metals rose on Monday to 61.60. During January, the ratio slightly slipped by 0.97% as silver has moderately out-performed gold.

The gold and silver futures volumes of trade have picked up and reached on Monday 167 thousand and 41 thousand, respectively. No surprise, the highest levels in the past couple of weeks. The volume of trade is likely to keep rising in the following days. The low volume of trade in recent weeks may have enabled gold and silver to rally. This trend may change course in the coming days.

On Today's Agenda

EU CPI Flash Estimate: This index calculates the annual consumer price index of the Euro Area. Based on the recent estimate, the annual CPI rose to 0.9%, which is still well below the ECB’s target inflation of 2%. If the inflation rate continues to rise, this could indicate the EU economy is progressing. These developments could influence the ECB members with respect to ECB’s cash rate decision later this week;

American Trade Balance: This monthly update for November will present the changes in imports and exports of goods and services to and from the U.S, such as commodities such as oil and gas; based on the last American trade balance update regarding October the goods and services deficit narrowed to $40.6 billion;


For further reading:

Gold and Silver Prices Outlook for January 2014

Gold and Silver Weekly Outlook for January 6-10

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