Gold and silver are wrapping up the week a little higher than where they began it but still not in any sort of favorable position. Thanks to Christmas falling on Wednesday trading volumes were light all week and are expected to remain light until the latter stages of next week. With the New Years holiday falling on a Wednesday next week most people will be away from their offices and thus trading volumes will lag.
Gold and silver are beginning to take small steps toward regaining the value they have lost over the past month or so, but with a subdued trading atmosphere the direction gold and silver are actually heading in is difficult to assess.
Reflecting on 2013 and Looking Ahead to 2014
Gold and silver have had a turbulent year to say the least and with 2013 coming to an end it is now time for investors to decide what path they will pursue this next year. Thanks to a recent tapering announcement and the possibility of similar tapering measures being initiated in 2014, many investors are not sure what to think of their investments in precious metals. With less help from the Fed, many are worried as to how markets will react in the long-run.
Even though investors’ risk-appetite is inordinately high right now, things will level off soon and when they do investors will be greeted by an entirely new marketplace. In these last and final days before the end of the year the only major activities investors will be taking part in is prepping their portfolios for the beginning of the new year. As of now interest is almost wholly centered around US stocks as both the Dow and the S&P 500 have been on major bullish runs for the past few weeks. Despite many investment experts thinking that the bullish run will be put to an end in the near future, stocks look like they are not losing any momentum. Even during this holiday week stocks were able to reach and eclipse multi-month and year highs.
Gold and silver may be suffering stagnation at the moment, but their time may be just around the corner. The US economy is not nearly as strong as recent runs suggest and looming government issues may propel gold right back into the safe-haven spotlight sometime in 2014. With the last two weeks of the year being as slow as these two will be when all is said and done, it is extremely hard to get a clear picture as to the strength of gold and silver down the road.