The prices of gold and silver changed direction and fell during last week. The decline of precious metals coincided with the appreciation of the USD against several currencies including the Aussie dollar, Canadian dollar and Japanese yen. Will gold and silver change course and rally this week? As I have pointed out in the recent precious metals weekly outlook, several reports and meetings may affect precious metals prices this week. These items include: FOMC meeting, U.S GDP for Q4 2012, U.S non-farm payroll report, China’s manufacturing PMI, and jobless claims weekly update. On today’s agenda: Euro Area Monetary Development, U.S Core Durable Goods and U.S. Pending Home Sales.
Here is a short outlook for precious metals for Monday, January 28th:
Precious Metals – January Update
On Friday, the price of gold fell by 0.8% to $1,656.6; Silver price also declined by 1.62% to $31.18. During last week, gold decreased by 1.8%; silver, by 2.32%. Moreover, during last week, the SPDR Gold Shares (GLD) also fell by 1.5% and reached by January 25th 160.65.
Current Gold and Silver Rates as of January 28th
Gold (short term delivery) is traded at $1,655.35 per t oz. a $3.3 or 0.2% decrease as of 11:39*.
Silver (short term delivery) is at $30.92 per t oz – a $0.3 or 0.95% decrease as of 11:39*.
(* GMT)
Daily Outlook for January 28th
Prices of precious metals changed direction and declined during last week. I suspect metals will further fall this week. The recent decision of the Indian government to raise taxes on gold imports is likely to pull down the demand for gold in this country in the coming weeks. This may have also led to a short term spike in the demand for gold before the tax will be implemented.
For the rest of the report you can see it at Seeking Alpha
Here is a reminder of the top events and publications that are scheduled for today and tomorrow (all times GMT):
Today
09:00 – Euro Area Monetary Development
13:30 – U.S Core Durable Goods
15:00 – U.S. Pending Home Sales
Tomorrow
07:00 – German Consumer Climate
15:00 – U.S Consumer Confidence
For further reading:
- Gold and Silver Outlook for January 28- February 1
- Weekly Outlook Financial Markets for January 28- February 1
- Gold and Silver Outlook for January
- Gold and Silver Yearly Outlook For 2013