Events Impacting Gold And Silver In The Week Of January 19th

In this article, we summarize which events in the week ahead could impact the gold price and silver price. At the bottom of the article we explain that these events are generaly no fundamental drivers, but mostly the result of trading in COMEX futures.

Over the last week, between January 12th and 16th, both gold and silver moved significantly higher. Both metals were on a steady rise, when they exploded higher on Thursday with the surprise decision of the Swiss National Bank to unpeg the Euro and the Swiss Franc. Gold broke through its “über” important resistance line of $1250. Gold is currently trading much higher in ALL currencies, a very bullish development. There is clearly momentum in the precious metals.

For the week commencing January 19th, there is are some key economic data releases on the agenda which are not very likely to cause significant volatility in gold and silver prices. However, all focus this week is on the European central bank who will announce two things. First, an interest rate decision is scheduled. Second, a monetary stimulus package could be announced, some sort of bond buying program (comparable to QE in the U.S.). Apart from the ECB, there is a possibility that the Japanese Central Bank would be on record on Wednesday with a press conference, although not confirmed at this point. All eyes are on the ECB President on Thursday who is likely to cause volatility in stock markets, currency markets and precious metals.



Note: The primary focus of our website is to report on the different aspects of the gold market: fundamentals, economic and monetary analysis, basic technical analysis. Our view on the real price setting in the gold and silver market differs from the mainstream view. Price changes happen to coincide with events or announcements; mainstream media are used to report a relationship between both. However, we believe that the real price setting for the time being is taking place in the COMEX futures market. Market expert Ted Butler does an outstanding job analyzing the weekly evolution in the COMEX market and how it affects price setting

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing