Gold and silver prices ended on Friday with little movement, and this might continue during today’s trading. Currently gold and silver prices are slightly falling. On today’s agenda: China and EU flash manufacturing PMI.
Here is a short outlook on gold and silver prices for Monday, April 23rd:
Gold and Silver– April Update
Gold price edged up on Friday by 0.09% to $1,642.8; silver on the other hand decreased by 0.4% to $31.72. During April, gold decreased by 1.74% and silver by 2.35%.
The chart below shows the developments in gold and silver prices during the month (normalized to 100= March 30).
The ratio between gold and silver rose to 51.79. During April the ratio remained nearly unchanged as gold has performed very similar to silver during the month. In the chart below are the shifts in this ratio during April (up to date).
On Today’s Agenda
China flash Manufacturing PMI: in the HSBC Manufacturing PMI report regarding February 2012 the Manufacturing PMI edged down to 48.1; if this upward trend will continue, this may also positively affect metals prices;
Euro Area Manufacturing PMI: In the last flash report regarding March 2012, the Euro Zone Manufacturing PMI declined to 48.7, i.e a contraction. This report might affect the Euro/USD exchange rate and consequently also bullion prices;
Forex / Gold & Silver Market – April
The Euro/U.S Dollar ended on Friday rising by 0.62% to 1.3219. During April Euro/U.S Dollar decreased by 0.94%; furthermore, the “risk currencies” which tend to be correlated with precious metals prices such as the Aussie dollar and Canadian dollar also appreciated against the U.S. dollar by 0.47% and 0.32%, respectively. If the US dollar will change direction and appreciate against the above mentioned exchange rates, this may signal gold and silver will trade down.
Current Gold and Silver Prices April 23rd
Gold (May 2012 delivery) is traded at $1,635.5 per t oz. a $7.3 or 0.44% decrease as of 08:25*.
Silver (May 2012 delivery) is at $31.44 per t oz – a $0.28 or 0.88% decrease as of 08:21*.
Daily Forecast and Analysis
Gold and silver prices didn’t do much last week; during the next couple of days the bullion market will start to weak up and the upcoming FOMC meeting might have a dramatic effect on the precious metals prices. In the mean time I suspect gold and silver prices will continue to dwindle and will follow the lead of the shift in the U.S dollar.
Here is a reminder of the top events and reports that are planned for today and tomorrow (all times GMT):
3:30– China flash Manufacturing PMI
09:00 – Euro Area Manufacturing PMI (April 2012)
09:30 – Great Britain Net borrowing
All Day – G7 Summit
13:30 –Retails Sales Canada (February 2012)
15:00 – U.S Consumer Confidence
15:00 – U.S. New Home Sales
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