Gold & Silver Prices – Daily Outlook April 5th 2012

Gold and silver prices tumbled during yesterday’s trading which was stem, in part, from the shift in market sentiment as a result of the recent publication of the minutes of the FOMC meeting back from March. On top of that according the ADP the U.S non farm payroll rose by 209k during March. If this figure will come close to the actual number coming Friday it could have another adverse effect on gold and silver prices. Today however is a new day with several new items on the agenda including: Swiss National Bank Forex Reserves, Great Britain Bank Rate & Asset Purchase Plan and U.S. Department of Labor– Jobless Claims Weekly Update; currently gold and silver prices are rising.

Here is a short forecast on gold and silver prices for Thursday, April 5th:

Gold and Silver– April Update

Gold price tumbled by 3.46% to $1,614; silver also sharply decreased by 6.68% to $31.04.

The chart below presents the changes of gold and silver prices during the past several weeks (prices are normalized to March 13th).  The chart shows how both precious metals prices tumbled down yesterday compared with their slow paced performance during the past several weeks

Gold price & silver prices 2012  April 5

The ratio between gold and silver rose to 51.99. During the past few weeks the ratio edged up by 3.06% as silver has underperformed gold. In the chart below are the changes in this ratio between March 13th and April 4th.

 Ratio Gold price forecast & silver prices 2012 April 5

On Today’s Agenda

U.S. Jobless Claims Weekly Update:  this weekly update will refer to he changes in the initial jobless claims for the week ending on March 31st; this upcoming weekly update may affect the strength of the US dollar and consequently may affect the direction of commodities prices;

Swiss National Bank Forex Reserves: the central bank ofSwitzerland will release the total value of its foreign currencies reserves during March;

Great Britain Manufacturing Production : this monthly report will present the monthly changes in the British manufacturing production for February; in the previous report regarding January the seasonally adjusted manufacturing index rose by 0.3% (M-2-M), and the index of production also edged up by 0.1%; this news may influence GBP traders; \

Great Britain Bank Rate & Asset Purchase Plan : Bank of England will decide on its basic rate for April 2012 and the progress of its asset purchase plan; as of March the BOE’s rate is still flat at 0.5% and the asset purchase plan of £325 billion continues;

Canada Employment Report: In the previous employment report for February 2012, unemployment edged up 0.2 percent points to 7.4%; the employment rose by 121k. the upcoming report might affect the Canadian dollar and consequently also affect the prices of commodities (see here the recent report);

Forex / Gold & Silver Market – April

The Euro/USD slipped again on Wednesday by 0.69% to reach 1.3142; furthermore, several other currencies pairs such as AUD/USD and CAD/USD also decreased. If the Euro/USD and AUD/USD pairs will change direction and rally today then their path may also positively affect gold and silver prices. Currently however the Euro is falling against the US dollar. This might be stem from the weak Spanish bond sales.

Current Gold and Silver Prices April 5th  

Gold (May 2012 delivery) is traded at $1,624.8 per t oz. a $10.7 or 0.66% increase as of 05:48*.

Silver (May 2012 delivery) is at $32.305 per t oz – a $0.96 or 2.89% increase as of 05: 48*.

(* GMT)

Daily Outlook and Analysis  

Gold and silver prices sharply fell yesterday as the market sentiment shifted not only on bullion market, but also on the rest of the commodities markets including oil market. Today, (all things being equal) there might be a shift back or a market correction to the tumble down from yesterday.   The U.S jobless claims might affect the strength of the US dollar and consequently bullion prices.  Alternatively the reports to come out today regarding Swiss, U.K and Canada might affect their currency and indirectly affect gold and silver prices.  

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

Today

08:00 – Swiss National Bank Forex Reserves

09:30 –Great BritainManufacturing Production

12:00 –CanadaUnemployment Rate and Employment Report

12:00 –Great BritainBank Rate & Asset Purchase Plan

13:30 –U.S.Department of Labor– Jobless Claims Weekly Update

15:30 – EIAU.S.Natural Gas Market Report

Tomorrow

08:00 – Swiss National Bank Forex Reserves

09:30 –Great BritainManufacturing Production

12:00 –Great BritainBank Rate & Asset Purchase Plan

13:30 –U.S.Department of Labor– Jobless Claims Weekly Update

15:30 – EIAU.S.Natural Gas Market Report

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