Will Gold and Silver Continue to Rally?

The prices of gold and silver bounced back during last month after they had tumbled down in the preceding months. Looking forward, will gold and silver continue to rally? Let’s examine the upcoming news and developments that may affect gold (GLD) and silver (SLV) markets and project the potential outcomes for precious metals.

U.S economy and the FOMC’s next move

The main issue in the U.S that could influence bullion traders is the next move of the FOMC: Some analysts suspect the FOMC might announce of tapering its asset purchase program in the September FOMC meeting. The recent reports regarding the U.S economy including the non-farm payroll report and growth rate of the GDP for the second quarter didn’t meet the expectations of many analysts and could suggest the U.S economic progress is slowing down, which may lower the odds of the FOMC cutting down QE3 anytime soon.

The minutes of the last FOMC meeting will come out on August 21st and might offer some insight behind the FOMC’s next step.

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

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