Gold and silver started off the week with little movement as gold inched up while silver slipped. This low volatility may continue this week as the market waits for the FOMC’s monetary policy meeting, in which many expect the FOMC will slowly taper QE3.Until then, for this week, will gold and silver continue to seek direction? On today’s agenda: Minutes of Bank of Japan’s Monetary Policy Meeting, China’s Industrial Production, and French Industrial Production.
Here is a short overview for precious metals for Tuesday, September 10th:
Gold and Silver Prices Review – September Update
On Monday, gold inched up by 0.01% to $1,386.40; Silver decreased by 0.73% to $23.68. During September, gold decreased by 0.67%; silver rose by 0.86%. In the chart below are the normalized prices of precious metals for 2013 (normalized to 100 as of August 9th). The prices of gold and silver haven’t done much in the past couple of weeks.
The ratio between the two precious metals inched up on Monday to 58.55. During September, the ratio decreased by 1.55% as silver has slightly out-performed gold.
The gold and silver futures volumes of trade have declined in recent days and reached on Friday 173 thousand and 42 thousand, respectively. For silver, the volume is at its lowest July. If the volume remains low this week, this could suggest the odds of sudden sharp move in the prices of gold and silver due to high volume will decline.
See here the weekly outlook for gold and silver for September 9-13.
On Today’s Agenda
Minutes of Bank of Japan’s Monetary Policy Meeting: Bank of Japan didn’t change it monetary policy. The minutes may offer insight referring to the future plans of BOJ; this news may affect the Japanese yen and consequently bullion prices;
China’s Industrial Production: According to the previous month’s report, China production growth rate rallied to 9.7% in yearly terms; if the growth rate will further rise it suggest China’s economy is progressing faster; China is among the leading countries in importing gold and silver.
French Industrial Production: This upcoming update will refer to figures during August. In the previous update, the industrial production declined again by 1.4% in July;
Currencies / Precious Metals– September Update
On Monday, the Euro/ USD currency pair slightly rose by 0.58% to 1.3255. During the month, so far, the Euro/USD edged up by 0.25%. Moreover, other currencies such as the Aussie dollar and Canadian dollar also appreciated yesterday against the U.S dollar by 0.47% and 0.35%, respectively. The correlations among gold, Euro and Aussie dollar slightly weakened in the past several weeks, e.g. the correlation between the Euro/USD and gold price is 0.29 during August-September.
Here is a reminder of the top events and publications that are scheduled for today and tomorrow (all times GMT):
00:50 – Minutes of Bank of Japan’s Monetary Policy Meeting
06:30 –China’s Industrial Production
08:45 – French Industrial Production
09:30 – Great Britain Claimant Count Change
Tentative – German 10 Year Bond Auction
Tentative – U.S 10 Year Bond Auction
For further reading: