The prices of precious metals slipped again yesterday. Gold has almost fallen below $1,200 mark and silver is getting closer to the $18 mark. The positive news from the U.S regarding its economic progress may have contributed to the rally of equity markets and the fall of precious metals markets. Jobless claims slipped by 9k to reach 346k; pending home sales index rose by 6.7% to 112.3 for May. Will gold and silver prices continue to slip? On today’s agenda: German Retail Sales, Australia Private Sector Credit, KOF Economic Barometer, and Canada’s GDP by Industry.
Here is a short outlook for precious metals for Thursday, June 28th:
Precious Metals – June Update
On Wednesday, gold declined by 1.46% to $1,211.6; Silver also slipped by 0.22% to $18.55. During June, gold declined by 13%; silver, by 16.56%.
In the chart below are the normalized rates of precious metals for 2013 (normalized to 100 as of May 31st). The rates of gold and silver sharply declined during June.
Australia Private Sector Credit: This monthly report shows the changes in credit in the private sector as of May. As of the previous report regarding April, total credit to the private sector provided by financial intermediaries increased by 0.3% (m-o-m) but rose by 3.1% compared to the previous time in 2012;
German Retail Sales: This monthly report will show the shifts in German retail sales during May. In April 2013, retail sales declined by 0.4% – lower than many had anticipated; if this report will show another fall in sales then it might weakened the Euro;
KOF Economic Barometer: this monthly report provides an estimate to the Swiss economy in the months to follow;
Canada‘s GDP by Industry: this monthly report shows the developments in major industrial sectors for April 2013. In the recent update regarding March 2013, the real gross domestic product slightly rose by 0.2%;
EU Economic Summit: In this summit, the EU ministers of finance will focus on unemployment including youth unemployment in EU. Considering Germany’s elections in September, the big decisions are likely to be made at the end of the year;
Currencies / Bullion Market – June Update
The Euro/ USD inched up on Wednesday by 0.20% to 1.3038. During the month, the Euro/USD increased by 0.30%. Conversely, other currencies such as the Aussie dollar slightly depreciated yesterday against the U.S dollar by 0.02%. The correlations among gold, Euro and Aussie dollar weakened, e.g. the correlation between the Euro/USD and gold price is 0.43. If these correlations will continue to weakened, the changes of the Aussie, Euro and Canadian dollar are likely to have a lesser effect on precious metals prices.
Gold (short term delivery) is traded at $1,202.40 per t oz. a $9.2 or 0.76% decrease as of 09:13*.
Silver (short term delivery) is at $18.86 per t oz – a 1.63% increase as of 09: 13*.
Here is a reminder of the top events and publications that are scheduled for today (all times GMT):
02:30 – Australia Private Sector Credit
07:00 – German Retail Sales
08:00 – KOF Economic Barometer
13:30 – Canada’s GDP by Industry
For further reading:
- Gold and Silver Outlook for June
- Will Gold Recover from its Recent Fall?
- Gold and Silver Prices Outlook for June 24-28
- Weekly Outlook of Financial Markets for June 24-28
- Euro/USD Weekly Overview for June 24-28
- Gold and Silver Yearly Outlook For 2013