Gold and Silver Prices Outlook for January 2012

Gold and silver prices changed direction and sharply fell during most of
December. Gold price ended the month 10.5% below its initial level, and silver
price declined by 14.9%. What were the main factors that may have caused the
sharp drop in gold and silver prices during December? Part of it might have to
do with the disappointment of many investors at the FOMC for not issuing a
stimulus plan (QE3); additional factors may include the ongoing uncertainty in
the EU regarding the European debt crisis and signs of the U.S economys slow
recovery. So what is next for gold and silver prices in January 2012? Lets
examine the metals market for December and provide a quick outlook for gold and
silver prices for January 2012. Gold and Silver Prices December 2011 Gold and
silver prices started the month of December with moderate changes that very
quickly turned into sharp falls. Gold price ended December with a 10.5% decrease
and silver price declined by 14.9%. Lets divide December into two parts as in
the table below with the breaking point at December 15th; during the first part
of December, gold price fell by 9.9% and silver price by 10.8%. But