Gold and silver are surprisingly posting some modest gains as of the writing of this post on Tuesday morning. After losing considerable value on the first day of this holiday week, it is intriguing to see metals bounce back, even if the bounce-back is more or less negligible. With New Years day falling on Thursday, this trading week is shaping up to be a lot like last one, with investors choosing to spend time with family and more or less avoid the markets.
With so very little to talk about this week, our attention is naturally drawn to what the year ahead has in store. Though it is nearly impossible to say for sure what lies ahead, you can bet that many of the same factors that we have been focusing on in recent months will carry over into the new year. Things like the state of global equities, the future of interest rates in the United States, and the price action of crude oil.
Greek Elections Newest Source of Anxiety for Investors
One of the only and biggest news stories of the week came yesterday from the most unlikely of places. Greece, a country that is in shambles financially, is in the midst of trying to elect their next president. Just yesterday, however, it was reported that the Greek parliament shot down the Prime Ministers newest candidate for the position of president. Though this move was not necessarily unexpected, Greece’s parliament went on to call for a general election to be held sometime in early 2015.
Investors are becoming so worried about what is happening in Greece due to the simple fact that it is now widely believed that a candidate who opposes the current financial bailout program will be elected. This is a major cause for concern for many investors and is causing anxiety enough that gold and silver are posting modest gains. Of course, the reality of the matter is that the situation in Greece will more than likely only provide a temporary uplift for gold and silver. It is going to take a fundamental change in the current market atmosphere for gold and silver to make any gains worth talking about as well as making gains they can hold on to.
Looking Ahead to the New Year
As we look ahead to 2015, I can guarantee that one of the biggest topics of discussion will continue to be when interest rates in the United States will be raised. This topic has been in and out of the headlines for months now, but it is now approaching the time when many people are convinced interest rates will be raised.
In addition to interest rates, investors will also be wholly focused on the financial status of economies across Europe and Asia. These economies have been underperforming as of late and are needed to grow to pick up the overall strength of the global economy. All in all, it is plain to see that we have plenty of information for investors to focus on as we head into the new year.