Gold and silver prices changed direction again and rallied yesterday from the sharp falls they experienced on Monday; other commodities such as crude oil prices also rose yesterday. Currently gold and silver are traded down. Today, the •23 November:U.S. Durable and Capital Goods Orders Declined
” target=”_blank”>U.S. Core Durable Goods report will be published, and the Euro Area Manufacturing PMI report.
Here is a market outlook of precious metals prices for today, November 23rd:
Gold and Silver Prices – November Update
Gold price bounced back and rose on Tuesday by 1.42% to $1,702.40; silver price also sharply rose by 5.91% (- the sharpest single day gain since October 6th) to $33.03. The chart below demonstrates the rise and fall of gold and silver prices during November (normalized gold and silver prices to October 31st 2011). Despite yesterdays’ sharp gains, gold price declined by 1.3% during the month and silver price by 3.9%.
The ratio between gold and silver prices sharply fell on Tuesday, November 22nd to 51.54. During November, gold price decreased by a slightly lower rate than silver price so that the ratio rose by 2.6%.
On Today’s Agenda
Euro Area Manufacturing PMI: In the last report regarding October 2011, the Euro Zone Manufacturing PMI fell to 47.2. This report will provide an indicator to the economic growth of the Euro zone economy and may influence the Euro/USD exchange rate and consequently gold and silver prices;
U.S Core Durable Goods Report: This monthly report will show the changes in U.S. orders of durable goods during October. During September 2011, manufactured durable goods decreased by $1.5 billion to $200.3 billion; Non-defense new orders for capital goods also fell by $1.8 billion or 2.3% (for the full report);
S&P500 / Gold & Silver Prices – November
The S&P500 index declined again and shed 0.41% off its value in Tuesday to 1,118.04 – the lowest level since October 7th. During November, the correlations among the major American stock market indexes such as the S&P500 index and gold and silver prices were strong and positive as seen in the chart below; thus, if the stock market will continue to decline as it did in recent week, it may also indicate that gold and silver prices are likely to fall.
Forex Trading / Gold & Silver Prices – November
The Euro to U.S Dollar exchange rate shifted again and slightly rose on Tuesday by 0.11% to reach 1.3505. Other forex currencies also appreciated against the US dollar including the Canadian dollar. If the major forex currencies will continue to depreciate against the USD as they did during most of November, they may also pressure gold and silver prices to decrease.
Current Gold and Silver Prices
The precious metals prices are currently traded down in the European markets:
Current gold price per ounce short term future (December 2011 delivery) is traded at $1,690.10 per t oz. a $12.3 or 0.72% decrease as of 10:42*.
Current silver price per ounce short term future (December 2011 delivery) is at $31.710 per t oz – a $1.321 or 4.0% decline as of 10:42*.
The current ratio of gold to silver prices per ounce is at 53.29.
Gold and Silver Prices Outlook:
Gold and silver prices continue to zigzag as they did in recent days with no clear direction. The recent debate over the U.S budget cuts will likely to keep affecting the financial markets and shift them into different directions until a decision will be made on the budget cuts. The U.S and Euro reports to be published today may affect commodities prices and also gold and silver prices if they will show significant changes. If the reports will be positive they may also help rally gold and silver prices. In the mean time gold and silver prices are likely to follow the direction of the U.S stock markets and risk currencies such as Euro, CAD and AUD.
Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):
09:00 – Euro Area Manufacturing PMI
13:30 – U.S Department of Commerce – Report on Core Durable Goods
15:30 – EIA Report on Crude Oil Stockpiles
09:00 – German Business Climate Survey
13:30 – Great Britain Updated GDP 3Q 2011
13:30 – Department of Labor Report – U.S. Unemployment Claims
15:30 – EIA report on U.S. Natural Gas Market
For further reading:
Monthly Analysis and Outlook:
- Gold and Silver Prices Monthly Outlook for November 2011
- Natural Gas Prices Monthly Outlook for November 2011
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.