Gold Price outlook for Jan-2013

Following positive news can hit the gold price to new heights.So watch out.

08:15 – Spain and Italy’s Manufacturing PMI

09:30 – GB Manufacturing PMI

15:00 – U.S. Manufacturing PMI

Day after Tomorrow
08:00 – KOF Economic Barometer
09:00 – Euro Area Monetary Development
13:15 – ADP estimate of U.S. non-farm payroll
13:30 – U.S. Jobless Claims Weekly Report
19:00 – Minutes of December’s FOMC Meeting


Here are several factors that may have pressured down of gold and silver prices during the month:

1. The recent U.S non-farm payroll report was well above 120k and tend to be negatively linked with gold and silver prices;
2. Several U.S reports were positive and showed progress for the economy: the Philly Fed indexhiked, retail sales also increased. These reports may have pulled up the USD;
3. The decline in the U.S jobless claims during most of December;
4. The slow deprecation of the Indian Rupee may have pulled down the demand for gold in India, among the leading importers of gold;
5. The improvement in the U.S as presented by the rise in housing starts and U.S GDP; this slow growth is likely to cut the odds of the FOMC intervening again in the near future;
6. The depreciation of several currencies including Aussie dollar during December;
7. The moderate decline in the U.S money base during recent months (see below for more)

Finally If the U.S stocks markets will rally this month (January effect), then they could pull down gold and silver.