Gold And Silver Price Influencers

Gold and silver appear to be ready to finish the week on a flat note, after making substantial gains on same days that were then almost immediately pared by large losses due to outflows from ETFs and IRA holders who liquidated metals in favor of paper. A number of factors will go into the equation of how gold and silver prices will move next week.

Gold and silver market analysts will be watching forthcoming economic data such as wholesale prices, property sells, the consumer price index, consumer confidence and adjusted and real inflation numbers. Ben Bernanke’s recent comments regarding the possible drawing back or cessation of the Federal Reserve’s bond-buying program will also affect the markets one way or the other, depending on Bernanke’s plan of action.

If the Fed decides to slow or stop its bond-buying and quantitative easing programs, gold could fall if institutional investors lower their risk appetite. Physical gold buyers, however, may view the Fed’s stoppage of stimuli as a sign to buy more gold, as many Americans are somewhat distrustful of Bernanke’s claims of a full economic recovery.

As of 5pm EST on Friday the gold spot price was down a modest $8.10 and settled at $1387 on the COMEX division of the New York Mercantile Exchange. Gold is down 0.58 % for the day and it has gone down approximately 12 percent since May 24 of last year, after averaging 8-15 percent gains each year for the last decade. Silver is down $0.28 to finish the day’s trading session at $22.35. Visit the Gold Silver Daily Market Update on Monday for a fresh look at gold and silver prices and how they could fluctuate throughout the week.

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