Gold and silver spot values are moving mostly sideways to slightly lower on this holiday eve. Due to Christmas being celebrated tomorrow, markets in the US will be closing early today, so it really shouldn’t come as a surprise that the market atmosphere is as quiet as it is today. In general, this week has been fairly quiet as most people are taking time away from work to be with family and friends. Looking ahead to next week, you can expect much of the same as we will be contending with yet another holiday week, this time with New Year’s Eve falling on Wednesday and New Year’s Day happening a day later.
Though the early parts of this week have been mostly quiet, we were dealt some economic data that was of particular importance to investors. Apart from this one piece of economic data, however, there really hasn’t been much for investors to talk about. As we approach the end of 2014, many investors are simply holding their positions and awaiting the plethora of economic data that will be dealt during the first few weeks of January. Unfortunately for gold and silver, even though they are not doing too much moving, what movement is happening is mostly in the downward direction.
3rd-Quarter GDP Data Revised Upward
Even though this is a holiday week and one that is generally devoid of markets-moving economic data, markets-moving economic data is exactly what we received on Tuesday. According to a US Commerce Department report, US 3rd-quarter GDP was revised upward from having grown a little more than 3%, to having grown by 5%. Of course, these growth readings are on an annualized basis, but this was quite the revision, especially considering that the original data was nothing to scoff at.
The report went on to say that an increase in consumer spending and more business investment were major factors behind the July-September US economic surge. As you probably could have guessed, yesterday’s revision only worked to boost equities both in the US and abroad. In addition to this, the US Dollar spiked in the wake of the GDP revision.
As we look ahead to the rest of the week, it is highly likely that things will remain quiet and subdued due to the fact that the Christmas holiday is tomorrow. In fact, I expect that a majority of the next two weeks will be more on the quiet side of things as investors are content to hold their positions until the New Year arrives. Gold and silver are also poised to stay mostly put, but with the market being as bearish as this current one is, I would not at all be surprised to see some modest losses pile up between now and next Friday.