Gold and Silver Prices – Daily Outlook for August 7

As many had anticipated, RBA cut its interest rate by 0.25 pp to 2.5%. This decision was expected so didn’t strongly affect the Aussie dollar yesterday. Nonetheless, gold and silver continued their downward trend and fell again. Will gold and silver continue their downward trend? On today’s agenda: German Industrial Production, BOE Inflation Report, U.S 10 Year Bond Auction, BOE Governor Carney Speaks, Japan’s monetary policy meeting, and Canada’s Ivey PMI.

Here is a short outlay for precious metals for Wednesday, August 7th:

Gold and Silver Prices Review – August Update    

On Tuesday, gold declined by 1.51% to $1,282.50; Silver also fell by 1% to $19.52. During August, gold slipped by 2.28%; silver slightly decreased by 0.53%.

In the chart below are the normalized prices of precious metals for 2013 (normalized to 100 as of July 10th). The prices of gold and silver have declined during the week.

Gold forecast and silver 2013  August 7The ratio between the two precious metals fell on Tuesday to 65.69. During August, the ratio decreased by 1.75% as silver moderately out-performed gold.

Gold  silver ratio 2013  August 7See here the weekly projection of gold and silver for August 5-9.

On Today’s Agenda

U.S 10 Year Bond Auction: the U.S government will come out with its monthly bond auction; in the last auction, which was held at the second week of July, the average rate reached 2.67% – the highest rate in recent months;

German Industrial Production: The upcoming report will refer to July 2013. In the last update, the industrial production fell by 1% during June;

BOE Inflation Report: Bank of England will publish this quarterly report that includes the bank’s inflation projection for 2013 and 2014;

BOE Governor Carney Speaks: Governor Carney will hold a press conference regarding the Inflation Report and the Bank’s projections for the economic growth in the coming years;

Canada‘s Ivey PMI: This report shows the diffusion index based on surveyed purchasing managers; in last month’s update, the index plummeted to 55.3;

Japan’s monetary policy meeting:Japan’s monetary policy meeting will be held on that day. BOJ members will decide on any shifts to the bank’s current asset purchase program. These decisions could affect the direction of the Japanese yen;

Currencies / Bullion Market – August Update

The Euro/ USD currency pair rallied on Tuesday by 0.35% to 1.3305. During August, the Euro/USD inched up by 0.02%. Further, other currencies such as the Aussie dollar appreciated 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 USD/CAD and gold price is -0.58 during July-August.  

Correlation Gold and EURO USD 2013 August 7

Current Gold and Silver Rates as of August 7th

Gold (short term delivery) is traded at $1,277.50 per t oz. a $4 or 0.31% decrease as of 09:42*.

Silver (short term delivery) is at $19.33 per t oz – a 0.99% decrease as of 09:42*.

(* GMT)

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


10:30 –BOE Inflation Report

10:30 –BOE Governor Carney Speaks

11:00 – German Industrial Production

15:00 – Canada’s Ivey PMI

Tentative – U.S 10 Year Bond Auction

Tentative – Japan’s monetary policy meeting and press conference


Tentative – China’s Trade Balance

00:50 – Japan Current Account

02:30 – Australia Employment Report

09:00 – ECB Monthly Bulletin

13:30 – U.S. Jobless Claims Weekly Report

Tentative – China’s CPI

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