Gold and Silver Prices Outlook for January 2012

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DG365FD46564GFH654FU898 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 economy’s slow recovery. So what is next for gold and silver prices in January 2012? Let’s 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%. Let’s 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