Gold and Silver Make Gains amid Solid Rebound in Crude Oil Prices

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Prices for gold and silver in the global markets jumped significantly higher during the end of trading on Wednesday 21st December. The prices for the precious metals are moderately higher than they were before, as they were supported by a weaker index for the United States dollar and by a big refund in prices pertaining to crude oil.

Gold futures for December went up by $6.8 to reach the cumulative price of $1,228.0 per ounce. The prices for December Comex Silver also went up by $0.236, to be at $14.505 by the end of the day.

The index trading for the United States dollar is weak, but still not really below the 1.5 year high achieved by the currency. The prices for Nymex crude oil are also on a corrective rebound of sorts, after a poor day of trading on Tuesday had pushed the prices for crude oil to a 12-month low of $52 per barrel.

Thursday, the 23rd of November, is likely to see quiet activity within the United States market, due to the Thanksgiving holiday on the day. The day after Thanksgiving, would mark the ‘Black Friday’ shopping festival that sees many investors and traders out shopping for deals on Christmas items.

Gold Market has Keen Eye on Italy

The global market for gold currently has its eyes set on Italy, with the country refusing to budge under the pressure set by the European Union. The Deputy Prime Minister for Italy Matteo Salvini has said that his country will not take a step backwards and will proceed with their proposed budget.

He further said that the idea behind their current budget was to see Italy grow, by spending on plans that would help this motive.

Markets currently have their eyes on Italy; news that was confirmed by Jasper Lawler a media correspondent.

It is an evolving situation … and any kind of negative news flow out of Italy is positive for gold,” Lawler said.

The European policymakers are currently looking at the economic risks as temporary, as mentioned by the European economist Jennifer McKeown.

McKeown mentioned, “The minutes emphasized that the weakness of available monthly data was partly down to temporary disruption to car production. The underlying path of growth was deemed ‘consistent with gradually rising inflation’.” She said this in a written statement on Thursday.

The EC’s [European Commission’s] rejection of Italy’s 2019 Budget since then is unlikely to have changed the ECB’s stance since Italian bond yields have actually edged down since its last meeting,” she further added. “If conditions in Italy deteriorate, any near-term response from the ECB is most likely to come through liquidity provision for the banks and the QE program seems unlikely to be extended.”

The ECB however is unlikely to respond to the situation in Italy, as their minutes from October suggested that the impact of the budget crisis have remained minimal and limited.