Gold & Silver Prices – Daily Outlook December 28

Gold and silver prices started the last week of the year with moderate falls. Will this slow crawl down of precious metals prices continue this week? Currently, gold and silver are traded moderately down. Today, the KOF Economic Barometer report will be published.

Here is a market outlook of precious metals prices for today, December 28th:

Gold and Silver Prices –December Update

Gold price slightly declined on Tuesday by 0.65% to $1,595.5; silver price on the other hand slightly declined by 1.18% to $28.74. The chart below shows the development of gold and silver prices during December (normalized gold and silver prices to November 30th 2011). During December gold price declined by 8.8% and silver price by 12.4%.

Gold price forecast & silver price outlook 2011 December 28The ratio between gold and silver prices slightly rose on Tuesday, December 27th and reached 55.51. During the month the ratio gained 4.0% as gold price has outperformed silver price.

Ratio Gold price forecast & silver price outlook 2011 December 28U.S. Consumer Confidence Rose in December

According to the recent U.S. survey, the consumer confidence index increased from 55.2 (1985=100) in November to 64.5 December. American consumers’ short term outlook in U.S. business conditions has also improved according to the report. This mews may have been among the factors to pull up energy prices and push down precious metals prices during yesterday’s trading as explained in the related post.

On Today’s Agenda

KOF Economic Barometer: this report offers a forecast of the Swiss economy in the months to come. In the recent press release, the report predicted that the Swiss Economy is headed towards stagnation in 2012;

Forex Trading / Gold & Silver Prices – December Update

The Euro to U.S Dollar slightly rose on Tuesday by 0.21% to reach 1.3072. Furthermore, other forex exchange rates such as the Australian dollar also moderately appreciated against the U.S dollar. If major currencies will change direction depreciate against the U.S. dollar, it may also affect gold and silver prices to further fall.

Current Gold and Silver Prices December 28th

The major precious metals are currently slightly declining in the European markets:

Current gold price per ounce short term future (January 2012 delivery) is traded at $1,588.70 per t oz. a $6.8 or 0.43% decrease as of 08:27*.

Current silver price per ounce short term future (January 2012 delivery) is at $28.680 per t oz – a $0.060 or 0.21% decrease as of 08:26*.

(* GMT)

Gold and Silver Prices Outlook:

Gold and silver prices moderately declined during recent weeks: gold price has declined during the past four business days, each time by less than one percent drop. Despite the rally in crude oil prices, and Forex markets (such as CAD and AUD), gold and silver prices continued to decline. I speculate this slow crawl down of precious metals prices might continue throughout the remainder of the week, unless there will be a breaking news that could stir up the markets such as new development about the European debt crisis or the economic progress of the U.S.  

Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):

Today

10:30 – KOF Economic Barometer

Tomorrow

09:00 – Monetary Developments in the Euro Area

Preliminary CPI in Germany

13:30 – Department of Labor Report – U.S. Unemployment Claims

15:00 – U.S. Pending Home Sales

For further reading:

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