Gold and Silver Prices Weekly Outlook for May 28-June 1

Last week gold and silver prices continued with their downward trend during most of the week up to Thursday. Will this downward trend continue as we are entering the last week of May? This upcoming week there are items on the agenda that may affect the gold and silver prices. The main publications will revolve around the U.S non-farm payroll report, China’s manufacturing PMI, U.S pending home sales ECB President Draghi speech, U.S. ISM Manufacturing PMI and American GDP for Q1 2012.

  Here is a short overview and an outlook for May 28th to June 1st; this includes a short description with a fundamental analysis of the main news, publications, and public speeches that may influence bullion traders.

Gold price declined during the first several days of the week but rose on Thursday and Friday. During last week it fell by 1.3%. Silver also decreased on a weekly scale by 1.15%.

During last week the main news items were related to the U.S housing market: the U.S new home sales and existing home sales rose during April. This news may have adversely affected bullion rates. The U.S Jobless claims didn’t change but the core durable goods slightly rose in April. By the end of the week commodities including gold, silver and oil rallied from their downward trend perhaps as a correction.

In Europe there is still a lot of speculation around Grexit. I have reviewed the potential ramifications on gold price if Greece will exit the EU.

The Euro depreciated again vs the U.S dollar by 2.07% (on a weekly scale); furthermore, other “risk” currencies such as the Australian dollar and Canadian dollar also weakened against the U.S dollar by 0.88% and 0.69%, respectively. The ongoing decline in the Euro/USD and AUD/USD may have been among the factors to drag down gold and silver during the first half of the week.

The video link below shows a broad overview for the main publications and events that may affect gold and silver prices between May 28th and June 1st. Some of these reports and events include: U.S non-farm payroll report, U.S GDP for Q1 2012, U.S consumer confidence, Canada’s GDP, China’s manufacturing PMI, U.S pending home sales, ECB President Draghi will speak, EU monetary development and  U.S. jobless claims weekly update (just to name a few).

In conclusion, I still speculate precious metals prices will continue their slow paced downward trend during most of the week: The upcoming U.S reports including the non-farm payroll report and second estimate of GDP for Q1 might affect the path of not only the USD, but also gold and silver prices: if the U.S employment will continue to dwindle it could help rally precious metals by the end of the week and raise again the speculation of a future intervention by the Fed.

The developments in Europe including Greece, the EU related reports and the upcoming speech by President Draghi might also affect the Euro, which could consequently also affect gold and silver. Finally the Asian markets including India and China could also adversely affect bullion rates as long as these countries will continue to show weakness.

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