Gold and silver prices continued to seek direction as they fell during yesterday. Moreover, leading currencies such as the Euro, Japanese yen and Aussie dollar fell against the USD yesterday. In the U.S, jobless claims slipped by 4k to reach 323k as of May 4th. Will gold and silver continue to trade down? On today’s agenda: Bernanke’s Speech, Reserve Bank of Australia Monetary Policy Statement, G7 Summit, and Canada’s Employment Report.
Here is a short projection for precious metals for Friday, May 10th:
Precious Metals – May Update
On Wednesday, the price of gold slipped by 0.35% to $1,468.6; Silver also decreased by 0.07% to $23.89. During the month, gold fell by 0.24%; silver, by 1.04%.
In the chart below are the normalized prices of precious metals for 2013 (normalized to 100 as of April 15th). The prices of gold and silver zigzagged in the past several days.
The ratio between the two precious metals slipped on Wednesday to 61.46. During the month, the ratio rose by 0.80% as gold slightly out-performed silver.
Reserve Bank of Australia – Monetary Policy Statement: The RBA will publish its quarterly report regarding the Bank’s monetary policy;
G7 Summit: The financial ministers of the leading countries will convene in UK; this two day summit will most likely revolve around the ongoing debt crisis in Europe and other economic global challenges;
Canada‘s Employment Report: In the recent employment update for March 2013, unemployment rose to 7.2%; the employment fell by 54.5k during the month. The upcoming report might affect the Canadian dollar;
Bernanke’s Speech: Chairman of the Federal Reserve Ben Bernanke will give a speech at the Federal Reserve Bank’s 410th Annual Conference on Bank Structure and Competition, in Chicago. The title of his speech is “Monitoring Finance “. Following the recent FOMC meeting from last week, if the Chairman of Fed will offer some insight regarding the future steps of the FOMC this could stir up the precious metals market;
Currencies & Bullion Market – May Update
The Euro/ USD fell on Wednesday by 0.84% to 1.3043. During the month, the Euro/USD slipped by 0.95%. Moreover, other currencies such as the Aussie dollar and Canadian dollar depreciated yesterday against the U.S dollar by 0.87% and 0.41%, respectively. The depreciation of these currencies against the U.S dollar may have partly contributed to the fall of gold and silver during yesterday. The correlations among gold, Canadian dollar and Aussie dollar remained strong: during April/May the linear correlation between gold and USD/CAD was -0.67 (daily percent changes); the linear correlation between the gold and AUD/USD was 0.59 (daily percent changes). These correlations suggest the recent fall of precious metals prices was partly related to the latest developments in the foreign exchange markets.
Current Gold and Silver Rates as of May 10th
Gold (short term delivery) is traded at $1,459.1 per t oz. a $9.5 or 0.65% decrease as of 04:16*.
Silver (short term delivery) is at $23.75 per t oz – a 0.69% decrease as of 04:16*.
Here is a reminder of the top events and publications that are scheduled for today (all times GMT):
01:30 – Reserve Bank of Australia – Monetary Policy Statement
All Day – G7 Summit
13:30 – Canada’s Employment Report
14:30 – Bernanke’s Speech
For further reading: