Events Impacting Gold And Silver Prices In The Week Of January 12th

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 5th and 9th, both gold and silver moved slightly higher on a weekly basis. On an intra-week basis, there was a steady rise with a small decline on Wednesday January 7th, the day the U.S. Fed released the minutes of their December meeting. The metals went through a small consolidation on Thursday January 8th, and experienced a strong day on Friday. There was not much volatility last week. As we wrote earlier in Gold Price In Euro Breaks Out, Pierces €1000, Euro Gold is breaking out of a long term consolidation process.

Gold in Dollar rising steadily, Euro gold breaking out big time, along with a rising U.S. Dollar, is undoubtedly to be considered breaking news. The focus of this article, however, is not inter-market analysis, nor chart analysis. Rather, we look forward to economic data releases and/or central bank announcements which could result in volatility in metals prices.

For the week commencing January 12th, there are some key economic data releases on the agenda which could cause significant volatility in the gold and silver price. There is no major central bank speech on the agenda. Below is a more detailed calendar of economic data releases in key markets. There is a possibility of increased volatility on the days where the CPI figures are released (in the U.S., Europe, and the U.K.), although we do not expect major surprises there. We are clearly in a low inflation environment, which is not likely to change in the short run. The U.S. retail sales or manufacturing index is not likely to impact the price of the metals, nor is the Chinese trade balance.



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.

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