Gold and Silver Forecast for January 24th

The prices of gold and silver changed course and after a two day fall, they have bounced back on Thursday. Their recent rally coincided with the sharp appreciation of leading currencies against the USD including Euro and Japanese yen. In the U.S, jobless clams inched up by 1k to reach 326k; existing home sales slightly disappointed and rose by only 1% during December to reach 4.87 million home sales. On today’s agenda: Canada Core CPI.  

Here is a short overview for precious metals for Friday, January 24th:

Gold and Silver – January Review                             

On Thursday, gold rose by 1.91% to $1,262.3; Silver, by 0.87% to $19.99. During January, gold increased by 4.99%; silver, by 3.38%. In the chart below are the normalized prices of bullion for the past several weeks (normalized to 100 as of December 31st). The prices of gold and silver have slightly rallied in recent weeks.

Gold and silver Chart 2014  January 24

The ratio between the two precious metals rose on Thursday to 63.14. During January, the ratio edged up by 1.56% as silver has moderately under-performed gold.

Gold  to silver ratio Chart 2014  January 24On Today’s Agenda

Canada Core CPI: This monthly update will show the changes in the CPI and core CPI of Canada for December; in the previous report, the core CPI inched down by 0.1%;

Currencies / Precious Metals Correlations – January Update

On Thursday, the Eur/USD currency pair sharply increased by 1.1% to 1.3696. During January, the Eur/USD decreased by 0.34%. Moreover, other currencies such as the Japanese yen also sharply appreciated yesterday against the U.S dollar by 1.21%. Nonetheless, the correlations among gold, silver and Euro have remained weak in recent weeks, e.g. the correlation between the Euro/USD and gold price is only 0.09 during December/January. The correlation between USD/Yen and gold is -0.30. This could suggest the changes of the gold and silver prices have little to do with the changes in the forex market.

Here is a reminder of the main events and publications that are scheduled for today (all times GMT):

13:30 – Canada Core CPI

For further reading: