The prices of gold and silver haven’t performed well during May. But looking forward, will gold and silver recover from their recent tumble. Let’s break down the upcoming events that may affect gold (GLD) and silver (SLV) prices and analyze the latest developments in the bullion market.
This week, U.S non-farm payroll report will be published. If the U.S employment will improve, this could pressure up the USD and thus pull down the demand for safe haven investments including gold and silver. Following last month’s Bernanke’s testimony in Congress, many speculate, the Fed might taper its current asset purchase program.
China’s Demand for Silver Is Falling
Despite the recent rise in the manufacturing conditions of China last month, its demand for silver declined: During April, silver imports fell by 28% (year-over-year) and reached 172 tons. The upcoming trade balance report of China will come out on Friday. If China’s imports of gold and silver will reveal a further drop in imports, this could feed the negative market sentiment towards precious metals.
For the rest of the report you can see it at Seeking Alpha
For further reading see: