Gold and silver prices didn’t do much in the past couple of days and only slowly slid down after the publication of the FOMC statement following its meeting. The ECB left its policy unchanged as Draghi reiterated his pledge for low interest rates. In the U.S several reports came out: manufacturing PMI rallied again and reached 55.4 in July – this means the manufacturing sectors are growing at a faster pace; jobless claims fell by 19k to reach 326k – this is another improved. These news items could pressure down bullion prices. Moreover, if the upcoming labor report will be better than expected it could push further down gold and silver. On today’s agenda: U.S. Non-Farm Payroll Report, U.S Factory Orders, Spain’s unemployment Change, Australia’s PPI, GB Construction PMI.
Here is a short outlay for precious metals for Friday, August 2nd:
Gold and Silver Prices Review – August Update
On Thursday, gold inched down by 0.13% to $1,310.70; Silver also remained virtually unchanged as it slipped by 0.02% to $19.62. During July, gold rose by 7.24%; silver, by 0.91%.
The ratio between the two precious metals rose on Thursday to 66.79. During August, the ratio slipped by 0.12% as silver slightly out-performed gold.
See here the weekly outlook of gold and silver for July 29- August 2.
On Today’s Agenda
U.S. Non-Farm Payroll Report: in the latest employment report for June 2013, the labor market sharply rose again: the number of non-farm payroll employment rose by 195k; the U.S unemployment rate remained flat at 7.6%; the current expectation are that the number of jobs added will reach 200k in July; if the numbers in the jobs report will exceed this number or revolve around it, this may pressure down the prices of gold and silver;
Spain‘s unemployment Change: the number of people unemployed in Spain dropped in June by 127.2k. This mean, the employment situation in Spain has improved;
Australia’s PPI: This quarterly update will pertain to second quarter of 2013. During the first quarter of 2013, the producer price index rose by 1.6% compared to the first quarter of 2012 and by 0.3% compared to Q4 2012; this index may affect the Aussie dollar.
GB Construction PMI:Great Britain’s construction sector in June 2013 slightly improved as the PMI increased to 51 – the construction sector is growing at a slightly faster rate;
U.S Factory Orders: In the last report factory orders rose by 2.1%; this report will offer some insight regarding the progress of the U.S economy;
Currencies / Bullion Market – August Update
The Euro/ USD currency pair changed direction and fell on Thursday by 0.71% to 1.3207. During the week, the Euro/USD fell by 0.54%. Moreover, other currencies such as the Aussie dollar also depreciated again yesterday against the U.S dollar by 0.63%. The correlations among gold, Euro and Aussie dollar remained strong, e.g. the correlation between the Euro/USD and gold price is 0.53 during July.
Current Gold and Silver Rates as of August 2nd
Gold (short term delivery) is traded at $1,287.10 per t oz. a $24.1 or 1.84% decrease as of 09:18*.
Silver (short term delivery) is at $19.27 per t oz – a 1.80% decrease as of 09:18*.
Here is a reminder of the top events and reports that are scheduled for today (all times GMT):
08:00 – Spain’s unemployment Change
15:00 – Australia’s PPI
09:30 – GB Construction PMI
13:30 – U.S. Non-Farm Payroll Report
15:00 – U.S Factory Orders
For further reading:
- Will Gold Recover from its Recent Fall?
- Weekly Outlook for July 29- August 2
- Gold and Silver Weekly Outlook for July 29- August 2
- Euro/USD Weekly Overview for July 29- August 2
- Gold and Silver Yearly Outlook For 2013