The gold and silver market has cooled down from last week’s high volatility, following last week’s FOMC’s no-tapering decision. On Monday, gold and silver slightly declined. Their decline coincided with the downfall of other commodities such as crude oil. In the forex market, leading risk related currencies such as the Euro and Aussie dollar depreciated against the USD. Will gold and silver continue to fall today? On today’s agenda: German Ifo Business Climate Index, Canada Retails Sales, and U.S Consumer Confidence.
Here is a short overview for precious metals for Tuesday, September 24th:
Gold and Silver Prices Recap – September Update
On Monday, gold slipped by 0.42% to $1,327; Silver also decreased by 0.32% to $21.81. During September, gold decreased by 4.93%; silver fell by 7.09%. In the chart below are the normalized rates of bullion for 2013 (normalized to 100 as of August 30th). The prices of gold and silver have mostly declined in the past several weeks.
The gold and silver futures volumes of trade have fallen and reached on Monday 152 thousand and 47 thousand, respectively. If the volume continues to fall this week, it could suggest the chances of sudden sharp move in the prices of gold and silver as a result of high volume will diminish.
See here the weekly outlook for gold and silver for September 23-27.
On Today’s Agenda
U.S Consumer Confidence: Based on the latest monthly report, for August, the consumer confidence index bounced back and rose to 81.5 (month-over-month). The current expectations are that the September index may keep rising; this report might affect precious metals prices;
German Ifo Business Climate Index: This index comprises the shifts (on a monthly basis) of manufacturers, builders, wholesalers, and retailers in Germany as of September. In the previous report regarding August 2013, the business climate index rose from 106.2 in July to 107.5 in August; if this trend persists, it might positively affect the Euro;
Canada Retails Sales: This report will refer to the retails sales in Canada as of July. In the previous report regarding June 2013, retails sales fell by 0.8%;
Currencies / Precious Metals– September Update
On Monday, the Euro/ USD currency pair slightly fell by 0.23% to 1.3344. During the month, so far, the Euro/USD rose by 2.05%. Conversely, other currencies such as the Aussie dollar and Canadian dollar appreciated yesterday against the U.S dollar by 0.39% and 0.19%, respectively. The correlations among gold, Euro and Aussie dollar have weakened in recent weeks, e.g. the correlation between the Euro/USD and gold price is 0.23 during August-September.
Current Gold and Silver Rates as of September 24th
Gold (short term delivery) is traded at $1,322.60 per t oz. a $4.4 or 0.33% decrease as of 08:14*.
Silver (short term delivery) is at $21.66 per t oz – a 0.92% decrease as of 08:14*.
Here is a reminder of the top events and publications that are scheduled for today and tomorrow (all times GMT):
09:00 – German Ifo Business Climate Index
13:30 – Canada Retails Sales
15:00 – U.S Consumer Confidence
07:00 – Gfk German Consumer Climate Survey
13:30 – U.S Core Durable Goods
15:00 – U.S. New Home Sales
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