This month is front-loaded with market data in expectation of the Christmas / New Year lull. Data out this week include the Federal Reserve's "beige book" out later today along with Chinese non-manufacturing PMI numbers, the ECB's monetary policy meeting for December on Thursday, and a key U.S. jobs report on Friday.
Gold investors who keep their eye on the funny money Federal Reserve Note valuation of their yellow metal have been treated to a rough year in general, and this past week helped to drive that point home as the precious metal hit a five-month low on a (hold your guffaws) “firmer dollar.” Prices broke down to the $1220 level at the beginning of the week and are currently holding in that range awaiting some key market data that might drive gold prices up or down.
Technical advantage in gold futures goes to the bears, as prices continue in that five-month low range. The next upside breakout objective is a close above technical resistance at $1258.20 and the downside breakout is a close below technical support of $1200. Silver bears are similarly in the driver's seat for March futures, with technical resistance at $20.35.
This month is front-loaded with market data in expectation of the Christmas / New Year lull. Data out this week include the Federal Reserve's "beige book" out later today along with Chinese non-manufacturing PMI numbers, the ECB's monetary policy meeting for December on Thursday, and a key U.S. jobs report on Friday. Some analysts are still scrutinizing the Fed's every pronouncement, including this week's beige book release, for indications on when and how the central bank will begin tapering its quantitative easing program. Look for markets to react to any guidance, however slight, with irrational exuberance, as has become the new normal. The Bureau of Labor Statistics non-farm payroll data on Friday will likewise be heavily scrutinized as those numbers will be a key input into the December FOMC meeting, and, again, possible future guidance on tapering.
For now, the status quo is indicating a sideways movement in gold at the new normal in the $1200 range and silver around $20. There is nothing in the immediate future (barring outright manipulation) that would seem to indicate a strong selling or buying pressure on the markets right now, so precious metal investors will have to grin and bear it in the knowledge that their investment For now, the status quo is indicating a sideways movement in gold at the new normal in the $1200 range and silver around $20. There is nothing in the immediate future (barring outright manipulation) that would seem to indicate a strong selling or buying pressure on the market right now, so precious metals investors will have to grin and bear this sideways trajectory in the knowledge that their investment is part of a long game strategy, not a trendy investment looking for a quick turnaround.