Gold and Silver Prices Weekly Outlook for June 18-22

Last week gold and silver prices didn’t do much; Gold had a steady upward trend; silver increased every day except on Thursday. Despite the testimony of Bernanke from the previous week, the speculations continue to run high of the Fed announcing next week of another stimulus plan. The upcoming FOMC meeting could stir up the markets but I suspect it will eventually be just another storm in a teacup. In Europe many anticipate for the results of the Greek elections and how this round might affect Greece leaving the EU. This upcoming week there are several reports on the agenda that may affect gold and silver prices. The main events will revolve around Greek elections and the aftermath, FOMC meeting, U.S Philly Fed index, China’s manufacturing PMI, G20 Meeting and U.S housing starts.

Here is a short outlook for June 18th to June 22nd; this includes a short description accompanied with a fundamental analysis of the main news, publications, and public speeches that may influence metals traders.

Gold rose during last week by 2.31%; Silver, much like gold, increased on a weekly scale by 0.94%. Furthermore, during last week the SPDR Gold Shares (GLD) also rose by 2% and reached by June 15th 157.84.

The Euro rose again against the U.S dollar by 0.97% (on a weekly scale); furthermore, other “risk” currencies such as the Australian dollar and Canadian dollar also appreciated against the U.S dollar by 1.59% and 0.47%, respectively. The ongoing rally in the Euro/USD and AUD/USD may have been among the factors to pull up gold and silver during last week. If these currencies will continue to trade up, it could further keep bullion rates high.

In the video below there is a broad overview of the main publications, events and reports that may affect gold and silver prices between June 18th and June 22nd. Some of these reports and speeches include: FOMC meeting, Greek elections, ECB President speech , U.S housing starts, China’s manufacturing PMI, Japan’s trade balance, U.S existing home sales and  U.S. jobless claims weekly report (just to name a few).


In conclusion, I speculate precious metals might shift between gains and losses with an unclear trend. The results of the Greek elections could affect the Euro/USD and consequently the path of bullion rates. If the Euro will continue to recover this could help rally bullion. On the other hand the results of the FOMC meeting could affect directly gold and silver especially if the Fed will introduce another stimulus plan or even hint of its possibility in the near future. In such a case bullion is likely to rise. But I don’t think the Fed will do so and in such a case precious metals are likely to continue to dwindle. The upcoming reports regarding the U.S including the Philly Fed, housing starts, existing home sales and jobless claims, could affect not only the USD, but also gold and silver prices: if the U.S reports will continue be negative or won’t meet expectations it could further push up precious metals. Finally, if China will continue to show slowdown it may also adversely affect bullion markets.

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