Gold prices progressed with an questionable trend throughout the initially two weeks of November, however at the end of the month silver increased whereas precious metal edged down. The most recent decision of the EU leaders to allow the next Greek bailout could have supported rally the Euro and also by continuance commodities values. Various U.S testimonies indicated signals of advancement: the U.S GDP growth rate for Q3 2012 was revamped as much as 2.7%; non-farm payroll went up by 171 thousand in October. All these news might have dragged down gold throughout the month.

The U.S elections were completed and they probably have added to the fluctuation in the gold and silver markets over the week of the elections. Presently, the U.S policymakers are arguing the multi-year budget to prevent the fiscal cliff right through to the end of the year. The aftermath of such discussions may have an impact on not just the USD but also gold. The moderate raise of Euro and AUD against the US dollar, primarily during the last few days of November could have favorably affected gold prices. Would gold and silver rally for the period of December? The major events of the month will likely be the final FOMC conference of the year, the U.S budget talks, the ECB interest rate pronouncement, as well as the economic advancements of China, U.S and Europe.

Listed here are some factors that could have pushed down of precious metal prices during the month:

• The FOMC minutes and Bernanke's speech didn't disclose any specific further suggestions concerning the future strategies of the FOMC in the next conference;



• The latest U.S non-farm payroll data was greater than expected therefore lessened the probabilities of an intervention of the FOMC in a kind of a alternative stimulus plan;



• The sharp decline in the U.S unemployed claims throughout most of November;



• The deprecation of the Indian Rupee could have curbed the interest in precious metal in India, among the biggest importers of gold;



• A few currency pairs deprecated against the USD which includes the yen and Canadian dollar; this might possess dragged down bullion rates;



• The positive change in the U.S as shown by the soar in real-estate begins and U.S GDP; this sluggish growth probably will slice the likelihood of the FOMC intervening once again in the near future;



• The unsuccessful attempts of EU policymakers on the multiple year budget of the EU regions;



• The tumble in the U.S money base throughout early months.

Summing up, forecast for gold and silver are going to trade fairly up throughout the month of December although there could possibly be excessive volatility in gold prices. The growth in the U.S money base, partially as a result of QE3, could favorably impact bullion prices. The budget presentations in the U.S will probably increase the skepticism around the U.S economic climate, which may favorably affect gold and silver via the declining of the USD. It is presume that even though the prices of gold and silver are going to sharply move over the month, their general direction will likely be positive. Ultimately, if primary forex such as Euro and Aussie dollar will certainly appreciate against the USD, then this would assist rally gold and silver.