Gold and Silver Prices Outlook for December 31 – January 4

The prices of gold and silver edged down during the previous week. As the year is winding down, the clock is still ticking on the fiscal cliff. Up to now, the White House and Congress didn’t progress towards a viable plan to cut the deficit in this decade. Last week, several U.S related reports came out last week: U.S new home sales increased in November, U.S consumer confidence slipped in December; the U.S jobless claims declined by 12k to reach 350k. These news items may have adversely affected precious metals during the week. Moreover, the speculations that Paulson might cut his position in gold are contributing to the weakness of precious metals. Will gold and silver continue to fall? Here is a short forecast for December 31st to January 4th; this includes a fundamental analysis of the main report that may affect precious metals including: U.S manufacturing PMI, minutes of recent FOMC meeting, EU monetary development, Canada’s employment, Germany’s retail sales U.S non-farm payroll report, China’s manufacturing PMI, and U.S. jobless claims. Continue reading