Gold and Silver Prices – Daily Outlook for July 26

The prices of silver and gold changed direction and bounced back from their two day fall. Their recent rally coincided with the recovery of leading currencies such as Euro and Japanese yen against the USD. In the U.S, jobless claims rose by 7k to 343k; U.S core durable goods sharply rose by 4.2% during last month. These news items may have helped to pull up commodities prices. In Europe, the monetary developments report showed a drop in M1 and M3 and contraction rate in loans to private sector reached 1.6%. This is another negative indication for the progress of the EU.

Will gold and silver prices continue to rise today? On today’s agenda: UoM Consumer Sentiment.

Here is a short outlook for precious metals for Friday, July 26th:

Gold and Silver Recap – July Update                       

On Thursday, gold changed direction and rose by 0.70% to $1,328.80; Silver also slightly increased by 0.66% to $20.15. During July, gold rose by 8.58%; silver, by 3.57%.

In the chart below are the normalized prices of silver and gold for 2013 (normalized to 100 as of June 28th). The prices of gold and silver have moved in an unclear trend during the week.

Gold and silver outlook 2013  July 26The ratio between the two precious metals edged up on Thursday to 65.96. During July, the ratio rose by 4.83% as gold slightly out-performed silver.

Gold  silver ratio 2013  July 26The gold and silver futures volumes of trade have increased in recent days and on Thursday reached 245 thousand and 35 thousand, respectively. If the volume will fall today, this could suggest the odds of sudden sharp shifts in the prices of gold and silver due to low volume will diminish. The chart below shows the volume of trading gold and silver futures in the CME during June and July. 

volume Gold & silver prices 2013  July 26See here the weekly outlook for precious metals for July 22-26.

On Today’s Agenda

UoM Consumer Sentiment (revised):University of Michigan will publish its revised consumer sentiment monthly update; this survey could offer an insight to recent developments in U.S consumers’ sentiment; based on the recent report, the sentiment index slipped to 84.1;

Currencies / Precious Metals Market – July Update

The Euro/ USD currency pair also bounced back on Thursday by 0.58% to 1.3277. During July, the Euro/USD increased by 2.05%. Further, other currencies such as the Aussie dollar and Japanese yen also appreciated yesterday against the U.S dollar by 0.92% and 0.98%, respectively. These changes may have contributed to the recent rally of commodities prices. Moreover, if this trend will continue, it may further pull up gold and silver rates. The chart below shows the strong linear correlations among precious metals prices and leading currency pairs.

Correlation Gold and EURO USD 2013 July 26Current Gold and Silver Rates as of July 26th

Gold (short term delivery) is traded at $1,336.20 per t oz. a $6.7 or 0.50% increase as of 08:51*.

Silver (short term delivery) is at $20.19 per t oz – a 0.15% increase as of 08:51*.

(* GMT)

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

Today

14:55 – UoM Consumer Sentiment

For further reading: