Gold and silver have posted some solid gains this week, especially considering it was yet another slow, holiday trading week. Over the course of the past two days of the week gold has picked up over thirty dollars while silver gained almost a whole dollar. While these gains are impressive, investors and market experts alike are unsure whether this was an isolated fluke or if it is indicative of a run that will continue next week.

With 2014 finally underway, it is only appropriate that we ponder what the next few months may hold for precious metals spot values.

Debt Ceiling Deadline an Issue…Again

The last time you have probably heard of the debt ceiling and its implications with regard to the US government was probably back in October of this past year. Back then, problems lawmakers had with agreeing on a budget as well as raising the borrowing limit forced the government to shutdown for over two weeks. The shutdown was ended thanks to lawmakers coming to temporary agreements with regard to both the budget and debt ceiling. A few weeks ago, the temporary budget was put back on the table and much to the surprise of everyone in the US, they came to a permanent agreement. Unfortunately, however, the same cannot be said about the debt ceiling, whose temporary deal is set to expire at the beginning of February.

With each passing day, the debt ceiling deadline inches closer and closer. If lawmakers are unable to come to an agreement with regard to the US’ borrowing limit, the government will be forced to focus on only that matter until a solution is reached. Not only that, but the borrowing of funds that helps the US government operate on a day to day basis will be put on hold.

What does this mean for precious metals? At this point it is hard to say. But one thing that is for sure is that the debt ceiling will be something for investors to focus on. Apart from this issue the geopolitical atmosphere in the US has been fairly quiet as of late, and if a deal is not reached that all may change very soon.