Gold and silver have posted modest gains on Thursday even though the marketplace was incredibly quiet. The Christmas holiday being celebrated directly in the middle of this week always meant that this 5-day session was going to be slower than normal. US stocks are continuing their bullish run which is effectively putting a large amount of downward pressure on gold and silver.
As this week comes to a close and we look forward to next week investors can expect to experience another slow 5-day session. The New Years celebration will be taking place Tuesday night into Wednesday which means that investors will once again be out of their offices for a large part of the week.
Chinese Interest Rates On the Rise…Again
Though investors witnessed a quiet trading atmosphere and a thin trading volume on Thursday, there was some interesting news out of China. Officials in China are reporting that the Chinese economy grew by nearly 8% on an annual basis in 2013. Market expectations were that the Chinese economy would grow by about 6%, so this news was taken as a positive by investors. Despite the positive economic report Chinese stocks did not perform well at all on Thursday. Rising short-term interest rates is the reason for stocks’ poor performance and is continuing to scare a lot of investors both in China and around the world.
US stocks, on the other hand, had another positive day on Thursday as they continue their extended bullish run. As the risk-appetite exhibited by investors grows, the interest investors have in gold and silver is diminishing. The reason for this is that as investors become more interested in taking on risk their interest in safe-haven precious metals decreases. Because monetary policy may be tightened throughout the course of 2014, preliminary outlooks are poor for gold and silver throughout next year.
There is little on the table for the remainder of the week and investors will likely be holding their positions until more inputs present themselves.