Gold & Silver Prices – Daily Outlook April 13th 2012

Gold and silver prices rallied yesterday and with this gain they have both advanced from their tumble at the beginning of the month. The U.S jobless claims rose and thus may have been among the factors to pull down the US dollar. China’s GDP expanded in the first Q of the year by only 8.1% – the lowest growth rate since 2009. China among the leading countries in importing gold and silver. This news may pull down bullion prices along with other commodities prices. Currently gold and silver prices are slightly falling. Today, there are several reports to come out including: U.S CPI, Great Britain PPI and U.S TIC Long Term Purchases.

Here is a short outlook on gold and silver prices for Thursday, April 13th:

Gold and Silver– April Update

Gold price bounced back and increased on Thursday by 1.22% to $1,680; silver also increased by 3.19% to $32.53. During April, gold edged up by 0.52% and silver by 0.13%.

The chart below presents the changes in gold and silver prices during the month (prices are normalized to March 30th).

Gold price & silver prices 2012  April 13The ratio between gold and silver declined to 51.67. During the month the ratio increased by 0.39% as gold has moderately outperformed silver. In the chart below are the shifts in this ratio during April (up to date).

Ratio Gold price forecast & silver prices 2012 April 13On Today’s Agenda

U.S Core Consumer Price Index:. Following the U.S PPI report that came out yesterday, in which the PPI remained unchanged while the U.S PPI excluding energy and food edged up by 0.3%, this may suggest the CPI will also remain flat while the core CPI might edge up. During February 2012, the core CPI rose by 0.4% (M-o-M) and also increased over the last 12 months by 2.2%; this report may affect the US dollar and consequently gold and silver prices;

U.S. TIC Long Term Purchases: In the previous report regarding January 2012, the net foreign purchases of U.S Treasuries longer-term notes reached $101 billion; if this trend will continue it may affect not only the currencies markets, but also commodities markets;

Great Britain PPI Input: this report will present the yearly rate of GB’s producer price index for March 2012; in the last report regarding February the input price rose by 2.1% (M-2-M); this news may influence British Pound traders;

Forex / Gold & Silver Market – April

The Euro/U.S Dollar rose again on Thursday by 0.6% to 1.3188. During April Euro/U.S Dollar decreased by 1.17%; furthermore, the Aussie dollar and Canadian dollar also sharply appreciated against the U.S. dollar by 1.36% and 0.93% respectively during yesterday’s trading. These currencies tend to be linearly correlated with the daily percent developments of gold and silver prices. Thus, if the Euro and Australian dollar currencies will continue to trade up today, they may signal gold and silver may also continue to rise.

Current Gold and Silver Prices April 13th

Gold (May 2012 delivery) is traded at $1,676.5 per t oz. a $4.1 or 0.24% decrease as of 23:41*.

Silver (May 2012 delivery) is at $32.35 per t oz – a $0.002 or 0.06% decrease as of 23: 41*.

(* GMT)

Daily Forecast and Analysis  

Gold and silver prices bounced back yesterday after they didn’t do much on Wednesday. This rally coincided with the strengthening of the Euro and Australian dollar, which are strongly positively linked with precious metals prices. The rest of the market including stocks and energy commodities also rose yesterday. If this direction will continue it may suggest that gold and silver will continue to trade up. The upcoming U.S reports including core CPI and TIC long term purchases may affect the strength of the US dollar and consequently gold and silver prices.  

Here is a reminder of the top events and reports that are planed for today (all times GMT):


09:30 –Great BritainPPI Input

13:30 –U.S Core Consumer Price Index

14:00 –U.S.TIC Long Term Purchases

For further reading: