January 5th Weekly Silver Market Preview

Gold and silver spot values are making marginal gains early Monday morning despite the better-performing US Dollar. After the last few weeks, both of which were shortened due to holiday celebrations, brought about almost no economic data, investors are looking forward to what this week has to bring seeing as there is a plethora of year-end pieces of economic data expected to be made available. Early reports from the United States are doing their part to reaffirm the overall confidence in the US economic system, but who knows if that will be the case from other economies.

Looking back on 2014, the year was overall fairly poor for gold and silver. The previous 12 months played host to a wide array of economic activity and saw spot values fluctuate, dramatically at times, before finishing the year having posted losses. Despite the fact that both gold and silver ended 2014 with net losses, things could have been much worse. As we look ahead to the duration of this year, it is plain to see that things are already shaping up to be similar to what we saw last year.

US Dollar Gains Market Attention

Throughout the latter part of last week and continuing into today, the US Dollar is making gains against rival currencies. Against the Euro specifically, the Euro has fallen to a 6-year low and is not looking like it is getting any stronger. Today’s more than 1% Euro decline is surprising, but by no means unprecedented. As US and EU monetary policies continue to diverge, so too will the value of the regions’ respective currencies.

For gold and silver, both of which are Dollar-denominated, the stronger Dollar will more than likely do its part in preventing gains from being made. While both gold and silver are in the green at the present moment in time, there is no guaranteeing that this will remain the case as we head further into the day and week.

Looking ahead, this week is expected to bring about a solid quantity of economic data from the US and from around the world. With the New Year holiday just having took place, the market is expecting a boatload of year-end data from all over the world. Already today from the United States, investors were greeted with a report claiming that young people are buying new homes at a faster rate now than they ever have in the past. This is yet another sign that the US economy is in solid shape and is continuing to improve. For gold and silver, upbeat US economic data is typically none too beneficial.

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