The prices of precious metals changed direction last week and rose. Will this rally continue this week? The U.S Presidential elections are over. The results of the elections may have contributed to the recovery of bullion rates. Back in November 2007, during the 2008 elections, the prices of precious metals also increased. The next step for the U.S is tackling the “fiscal cliff” by the end of 2012. This situation is likely to pull up bullion in the weeks to follow.
There were several reports published last week that may have also affected the forex and commodities: the U.S jobless claims declined again by 8k to reach 363k; American trade deficit declined on account of the sharp rise in exports of goods.
The video report herein has an outlook of gold and silver for the main publications and events that may affect precious metals during November 12th and November 16th. Some of these reports include:
Tuesday – European Council Meeting: In the European Council Meeting the EU ministers of finance will meet and talk about the recent monetary developments in Europe; this could include Greece’s eligibility to receive the next bailout package;
Wednesday – Minutes of FOMC Meeting: Following the October FOMC meeting, in which the Fed kept its policy unchanged, the bullion market didn’t have a strong reaction to this news – gold and silver prices slightly declined on the day of the announcement. The minutes of the recent FOMC meeting might add some additional insight behind this non-decision and more important the potential future steps of the FOMC especially with respect to the U.S fiscal cliff and the last FOMC meeting of the year;
Thursday – Bernanke’s Speech: Many will look towards Bernanke’s speech that could hint of the Fed’s future monetary steps. The Chairman of the Federal Reserve will talk at the HOPE Global Financial Dignity Summit, Atlanta, Georgia. The title of the speech is “Housing and Mortgage Markets”.
For further reading: Weekly Outlook of Financial Markets for November 12-16
By: Lior Cohen, M.A. in Economics, Commodities Analyst and Blogger at Trading NRG
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Source: Daily fx