Gold & Silver Prices – Daily Outlook July 2

Gold and silver prices changed direction on Friday and hiked along with other commodities rates. The resolution in the EU Summit helped rally of Euro/USD that dragged along with it other currencies and commodities rates. Will this rally continue this week? China’s manufacturing PMI index fell from 48.4 in May to 48.2 in June. This news may adversely affect commodities rates during the day. On today’s agenda: GB Manufacturing PMI and U.S. ISM Manufacturing PMI.    

Here is a short outlook for gold and silver for Monday, July 2nd:

Precious Metals –June Update

Gold price hiked on Friday by 3.47% to $1,604.2; silver also rose by 5.02% to $27.61. During the month gold increased by 2.56% while silver edged down by 0.52%.

The chart below shows the normalized rates of these precious metals during June (normalized to 100 as of May 31st).

Gold prices forecast & silver price outlook June July 2012The ratio between the two metals decreased on Friday to 58.1. During the month the ratio rose by 3.1% as gold has slightly out-performed silver.

Gold and Silver prices ratio 2012 JulyOn Today’s Agenda

U.S. ISM Manufacturing PMI: During May 2012 the index declined to 53.5%, which means the manufacturing is growing at a slower rate; this index might affect forex markets;

GB Manufacturing PMI: This report will pertain to Great Britain’s manufacturing sector status in June 2012. In the previous report regarding May 2012 the index tumbled down to 45.9%. This rate means the manufacturing sector is contracting; this index might affect GB Pound;

Currencies / Gold & Silver Market – June Update

The Euro/US Dollar hiked on Friday by 1.79% to 1.2666. During the month (UTD) the Euro/U.S Dollar increased by 2.43%. Further, other exchange rates including the Aussie dollar and CAD also appreciated on Friday against the USD by 1.92% and 1.6%, respectively. The recent decision made by the EU leaders pulled the Euro/USD up. If the Euro/USD will change direction and trade down, it could pull down along with it bullion rates. Currently the Euro is falling against the USD.

Current Gold and Silver Rates as of July 2nd

Gold (August 2012 delivery) is traded at $1,592.2 per t oz. a $12 or 0.75% decrease as of 06:04*.

Silver (August 2012 delivery) is at $27.28 per t oz – a $0.332 or  1.2% decrease as of 06:04*.

(* GMT)

Daily Outlook for July 2nd

Gold and silver hiked on Friday but this rally might be short lived. The recent disapproving news from China about the contraction in the manufacturing sectors could adversely affect commodities rates including precious metals. The upcoming U.S report regarding manufacturing PMI could also affect commodities rates and USD if the report will show a sharp shift form last month’s index.      

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


09:30 – GB Manufacturing PMI

15:00 – U.S. ISM Manufacturing PMI


4:30 – Reserve Bank of Australia – Cash Rate Statement

15:00 – U.S Factory Orders

For further reading: