After beginning the day treading some value, gold and silver minimized losses and were trading just a shade above even. To be fair, however, today has been fairly quiet due to this being a shortened holiday trading week. As we look ahead to the next few weeks, it is highly likely that the activity level of the global marketplace will pick up considerably due to there being a good quantity of economic data due out.
As we head further into this New Year, it is only right that we reflect on the year that has gone by. For gold and silver, these past 12 months have been a roller coaster ride. In the end, both gold and silver concluded the year having lost some value. Whether it be falling crude oil prices, the stronger US Dollar, or any other factors, most market developments throughout 2014 have been bearish in nature for gold and silver. Looking ahead to the new year, it is likely that the global marketplace will remain just as bearish due to the stronger US Dollar as well as equities that have been performing well.
Dollar Appreciates as Oil Continues Declining
Though this first day of 2015 trading and last day of the week has been quiet, there were a few things catching the attention of investors both in the United States and around the world. For one, the US Dollar began the day trending drastically higher and remained in elevated positions all day long. Against all major rivals, the greenback added value today.
Unsurprisingly, today saw the Euro currency depreciate. So long as US and European monetary policies are diverging, which they have been for months now, the Euro and Dollar will maintain their inverse relationship. Putting even more pressure on gold and silver today was the fact that crude oil is continuing its downward trend. For more than 2 months now, crude oil has been on an almost steady move downward and is bringing all other commodities down with it. For gold and silver, the declining value of crude oil has played a major role in bringing spot values down to their currently subdued positions. As you probably could have already guessed, the price action of crude oil will remain a very important piece of information for global investors.
Looking ahead to the next few weeks, it is highly likely that we will be receiving a good bit of year-end economic data from Europe, the United States, and elsewhere around the world. In addition to this, both the FOMC and the European Central Bank will be holding their first meetings of the New Year in the coming weeks. With monetary policy being so very important recently, you can bet that those two meetings will be met with some intense speculation as investors are still wanting to find out exactly when interest rates in the US will be raised. Now that the holiday season has come and gone, you will slowly but surely see things getting back to normal across the global marketplace.