Gold Prices: Dates To Watch For In December

Friday, December 2, 2016

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Less than one more month remains in 2016, which means we shouldn’t expect any turbulence in the markets, right? Of course, anyone who follows the markets knows that rarely are events so predictable. In fact, there are a few key moments to watch before 2017 rolls in that may have tremendous effects on the markets as a whole—and on the price of gold. Here are just a few of those key dates to watch:

Tuesday And Wednesday, Dec. 13-14: Federal Reserve Meetings

It’s not just gold bugs who watch the Federal Reserve meeting dates with great anticipation these days; the entire economy seems to hinge on every word that comes from chair Janet Yellen and her predecessors.

What gold investors are watching this time around is the high likelihood—or at least the apparent high likelihood—that we’ll see a rate increase. The Federal Reserve has been talking rate increases for a long time, with little to show for their promises. However, if economic news holds up, we may see interest rates tick up as we move into 2017.

And what about the case for a rate hike? According to Federal Reserve Governor Jerome Powell, that case is getting stronger. Said Powell: “Incoming data show an economy that is growing at a healthy pace, with solid payroll job gains and inflation gradually moving up to 2 percent.”

With a potential rate hike in the works, you might expect some downward pressure on the price of gold for the next quarter, although where gold goes in 2017 is anybody’s guess.

Thursday, Dec. 22: Jobless Claims

New unemployment claims tend to be a lagging indicator for the economy, but everyone still watches jobless claims as an indication of the confidence of businesses who may—or may not—be hiring. Dec. 22nd is a particularly important date because it will be the last time we get these numbers before Christmas, and could have a major impact on the confidence in markets heading into the holiday.

Jobless claims are just one variable in the economy, of course, and just one number even in the overall unemployment figures. But understanding jobless claims gives insight into how many people have recently lost their jobs, which is why so many people look to this indicator to see where the economy may be headed.

Reduced jobless claims could spell higher confidence in the market, which puts downward pressure on gold demand, which is why you’ll want to keep track of it as you track gold prices.

Tuesday, Dec. 27th: Consumer Confidence

Knowing the confidence of consumers, especially around the holiday season when consumers are at their most active, is vital to understanding how people really view the economy. No poll about the economy will be as effective at estimating confidence than looking at the actual behaviors of consumers who put their money on the line.

By Dec. 27th, we should have a pretty clear idea of where consumer confidence is, including the holiday numbers. That will not only set the stage for 2017, but will give financial analysts an ability to put a bow on the 2016 financial year—a year that thus far has seen improvement in gold and silver. Will 2017 be a similar year for gold? Only time can tell.

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Darren Capriotti

Darren Capriotti has been a market analyst for the past decade and is an expert in precious metals. He prides himself on his ability to analyze the market and offer true value to investors with questions about gold, silver, and other precious metals. Highly educated, incredibly passionate, and more accurate than most, Darren offers a true, unbiased look into what investors can expect in the precious metals market. You can reach Darren at dcapriotti@gold-eagle.com.

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