For a second consecutive day, both gold and silver spot values began trending upward straight from the opening bell. Despite this week already shaping up to be a bit quieter than the previous two, there will still be a good amount of price movement; or so it seems. While there is a good bit of economic data on the slate for this week, most of it will not have any major impact on the global marketplace.
In case you missed it, gold and silver both sold off at considerable rates to end last week due to the release of a much better than expected employment report for November. Compared to expectations that only 230,000 new non-farm jobs were created last month, the actual figures showed that more than 320,000 new jobs were created. This number helped give the US Dollar as well as US stocks a bit of a boost to close out the week. By the time this week rolled around, however, most of those gains were being mitigated by revived precious metals. Now on day 2 of gains, it will be interesting to see if gold and silver can add to or, if nothing else, retain today’s gains.
Weak Chinese Data Hurts Equity Markets, Limits Gold’s Upside
Just yesterday, the world was dealt a piece of economic data that was none too surprising, but nonetheless had a negative impact on the global equity market. Before US trading even got underway, it was reported that both imports and exports to and from China during November grew by far less than what was expected. Chinese imports were seen as having performed incredibly poor through November, and this did not do gold and silver any favors.
As the world’s biggest importer of precious metals, the downtrodden import numbers for November most definitely limited gold and silver’s upside yesterday. Like that of Europe’s, the Chinese economy has performed poorly for much of this year and is in need of something, anything to turn things around.
The sell-off of global equities continued into today and is playing a major role in gold and silver’s substantial gains. Still, crude oil is continuing to lag behind and is also continuing to limit the gains being made by gold and silver. It will be interesting to see, as the weeks wear on, whether crude oil will be able to bounce back, or if low gas prices are here to stay for some time. For gold and silver, it will naturally continue to be difficult to make gains should oil continue to be in abundance in the marketplace.