Are Gold and Silver making a comeback?

The prices of gold and silver tumbled down in the past couple of weeks to their lowest levels in years. Looking forward, will gold and silver bounce back? Let’s analyze the upcoming events that may stir up the gold and silver markets and examine the latest developments in precious metals.

U.S’s Economic Growth

This week, U.S non-farm payroll report will come out. This report could affect investors’ expectations regarding the odds of the FOMC tapering its current $85 billion a month asset purchase program. In the past, QE1 and QE2 contributed to the rally of precious metals prices as they raised concerns of a potential spike in inflation in the U.S. But in the past several years, the rate of inflation remained stable and in recent months even below the Fed’s target inflation of 2%.

If the U.S economy’s growth will slowdown and the number of jobs added will be below 150k, this could push back the Fed from tapering QE3 in the coming months and thus pressure back up gold and silver.

For the rest of the report you can see it at Seeking Alpha

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