The precious metal market received a key bounce off support at the $26 level during the illiquid holiday trading sessions. This week will inform us precious metal bugs of how legitimate the technical bounce was when trading resumes on January 3rd. In addition, January holds quite a few "key dates" you should mark on your calendar which may have a profound impact on gold and silver prices.
1/11/12 U.S. Fed Release of the Beige Book
Made public in 1983, the Summary of Commentary on Current Economic Conditions by Federal Reserve District, or Beige Book, as it is known, has a different style and tone than many other indicators. Rather than being filled with raw data, the Beige Book
takes a more conversational approach. The book has 13 sections in
total; 12 regional reports from each of the member Fed district banks,
preceded by one national summary drawn from the individual reports that
follow it. This is the first chance investors have to see how the Fed
draws logical and intuitive conclusions from the raw data presented in
other indicator releases.
The Beige Book is published eight times per year, just before each of the Federal Open Market Committee
(FOMC) meetings. While it is used by committee members during the
meeting itself, it does not carry more clout than other data values and
indicators. There is a lot of real-time data that the Fed has at its
disposal and, unfortunately, notes from the FOMC meetings themselves are
currently not public information.
The Beige Book aims
to give to give a broad overview of the economy, bringing many variables
and indicators into the mix. Discussion will be about things such as
labor markets, wage and price pressures, retail and ecommerce activity and manufacturing output. Investors can see comments that are forward-looking; the Beige Book will contain comments that look to predict trends and anticipate changes over the next few months or quarters.