Gold and silver prices continued their rally while the rest of the markets (including energy commodities and U.S stock markets) are falling. This movement in different directions isn’t likely to last long as energy commodities and stock markets tend to be strongly linked with the precious metals markets. The market mat start to move rapidly again during Thursday and Friday as many U.S financial reports will come out. Currently gold and silver prices are sliding. Today, ECB Monthly Bulletin will come out and Australia Rate of Unemployment.
Here is a short outlook on gold and silver prices for Wednesday, April 11th:
Gold and Silver– April Update
Gold price rose on Tuesday by 1.02% to $1,660; silver also increased by 0.49% to $31.68. During April, gold declined by 0.67% and silver by 2.48%.
The chart below presents the developments in gold and silver prices during the month so far (prices are normalized to March 30th).
The ratio between gold and silver edged up to 52.42. During the month the ratio increased by 1.845% as gold has slightly outperformed silver. In the chart below are the shifts in this ratio during April (up to date).
ECB Monthly Bulletin: This monthly bulletin for February 2012 examines the economic situation of the Euro Area including price stability, interest rate decisions and government’s debt; this report might provide some insight into the current expectations of the economic growth of the Euro Area;
Australia Rate of Unemployment: in the previous report the rate of unemployment edged up to 5.2%; the number of employed fell by 15,400 people; the number of unemployed slightly rose by 16,400 during February compared with January’s figures. If this trend ill continue to could affect the Australian dollar which is strongly correlated with bullion prices(see here the recent report);
Forex / Gold & Silver Market – April
The Euro/U.S Dollar edged down on Tuesday by 0.18% to 1.3082, as the market sentiment towards the Euro Zone was adversely affected by the recent developments in Spain and Greece. During April Euro/U.S Dollar decreased by 1.96%; furthermore, the Aussie dollar also depreciated against the U.S. dollar by 0.6%. The Aussie dollar and Euro were historically linearly linked with the daily movements of gold and silver prices. If the Euro and Aussie dollar exchange rates will continue their fall today then they may signal gold and silver may also curb their recent rally.
Current Gold and Silver Prices April 11th
Gold (May 2012 delivery) is traded at $1,658.9 per t oz. a $1.8 or 0.11% decrease as of 06:49*.
Silver (May 2012 delivery) is at $31.635 per t oz – a $0.044 or 0.14% decrease as of 06: 49*.
Daily Outlook and Analysis
Gold and silver prices continued their general direction of recent weeks of an upward trend following the sharp drop at the beginning of the week due to the FOMC meeting minutes. The risk appetite seems to have subsided a bit as U.S and Europe stock markets sharply declined while the demand for” safe haven” investments picked up again including U.S treasuries and gold and silver. The recent rally in gold and silver may continue if this sentiment will remain. The upcoming reports to be published may affect forex markets including the Euro and Aussie dollar and consequently gold and silver prices during today’s trading.
Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):
9:00 – ECB Monthly Bulletin
15:30 – EIA Crude Oil Stockpiles Report
2:30 –Australia Rate of Unemployment
13:30 –Canadian Trade Balance
Tentative –OPEC Monthly Report
Tentative –IEA monthly oil report
13:30 –U.S.Producer Price Index
13:30 –American Trade Balance
13:30 –U.S.Department of Labor– Jobless Claims Weekly Update
15:30 – EIA U.S.Natural Gas Storage Report
For further reading:
- Weekly Outlook for April 9-April 13
- Gold and Silver Prices Weekly Outlook for April 9-April 13
- Gold and Silver Prices Outlook for April 2012