During last week, gold and silver prices had one of their best performing weeks in recent time. But currently gold and silver are traded down. Today, the EU Summit will be held; the U.S. Personal Income and Outlays will be published.
Here is a report of major news items and events, and an analysis of metals prices for today, January 30th:
Gold and Silver Prices –January Update
Gold price very moderately increased on Friday by 0.32% to $1,735.4; silver price also slightly rose by 0.14% to $33.79. During January, gold price rose by 10.76% and silver price by 21.05%.
The chart below shows the sharp rally of prices of gold and silver during January (up to date).
The ratio between gold and silver prices slightly rose on Friday, January 27th and reached 51.36. During January the ratio fell by 8.5% as silver price has slightly outperformed gold price.
On Today’s Agenda
EU Summit: The European leaders will deliberate on talking action to stabilize the EU; if there will be important headlines from this summit this might affect forex and commodities traders;
U.S. Personal Income and Outlays (December 2011): This report will show the monthly changes in the personal spending and income for December (see here the recent report);
Forex Market / Gold & Silver Market – January
The Euro/U.S Dollar sharply rose on Friday by 0.85% to reach 1.3200 – this was the fifth consecutive day the Euro appreciated against the U.S Dollar; the Euro tends to be positively correlated with the daily changes of gold and silver prices; if the Euro will change direction and decline against the U.S Dollar it could indicate that precious metals prices will also trade down. Currently, the Euro/USD is trading down.
Current Gold and Silver Prices January 30th
Gold price per ounce (February 2012 delivery) is traded at $1,720.3 per t oz. a $15.1 or 0.87% decrease as of 09:23*.
Silver price per ounce (February 2012 delivery) is at $33.125 per t oz – a $0.665 or 1.97% decrease as of 09:23*.
(* GMT)
Gold and Silver Forecast
Gold and silver prices ended the week on a positive note but they are currently trading down. The recent recovery of the Euro may have contributed to the rally of precious metals prices. I speculate the bullion upward trend will continue, but there might be some corrections along the way especially if the Euro and other “risk currencies” (e.g. CAD and AUD) will trade down against the U.S dollar.
Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):
Today
All day – EU Summit
13:30 – U.S. Personal Income and Outlays (December 2011)
Tomorrow
10:00 – Euro Area Unemployment Rate
13:30 – Canada’s GDP by Industry
15:00 – U.S Consumer Confidence
2:00– China Manufacturing PMI
For further reading: