Gold and silver spot values are hovering near even as we kick off yet another shortened holiday week. While last week saw the Christmas holiday come and go, this week will see us say goodbye to 2014 and ring in the New Year. Due to this being yet another abbreviated week of trading, it is highly likely that we will not have too much, if any, economic data to contend with. Last week brought about but one noteworthy piece of data, but I am not expecting the same for this week.
Instead, you will find that the quieter market atmosphere is a direct result of investors looking to hold their positions until the New Year. With the New Year comes a heaping amount of economic data, so it is only right that investors be patient and make their next investing moves based off of what data is delivered through the next few weeks. All in all, I do not expect this week to be very action-packed at all.
US 3rd-Quarter GDP Revision Raises Eyebrows
Like this week, last week was expected to be almost wholly quiet due to the absence of any real economic data. Much to the surprise of everyone, however, last week brought about a crucial economic reading from the United States in the form of a 3rd-quarter GDP revision. According to the revision, released by the US Commerce Department, the US economy did not grow by little more than 3% as was originally recorded. Instead, it was reported that during the 3rd-quarter of 2014, the US economy actually grew by a robust 5% on an annualized basis.
As you could have probably guessed, this data was welcomed with open arms by investors as it almost immediately translated into surging stocks as well as a surging US Dollar. Those stock and Dollar rallies have continued into this week and are a major part of the reason gold and silver have been flat-out incapable of making any gains. Even when metals do make gains, they are almost instantly vaporized due to their inability to hang on to value in such a bearish market.
Though it is unclear what the New Year will bring, we do know that precious metals investors are hoping for a turnaround of sorts. Metals have been battered for much of the year and, though it doesn’t look like it, most are hoping that 2015 will be bullish for gold and silver. At this point, however, we will just have to wait and see what happens.