Gold & Silver Prices – Daily Outlook April 20th 2012

Gold and silver prices continue to shift from gains to losses with little increments as they did during most of the week; yesterday was no different. The bullion prices edged up. The rest of the markets including energy commodities and U.S stock markets declined. The slow paced growth in the Philly Fed and modest result of the jobless claims weekly update may have influenced traded to take off some of their bets off the table. Nevertheless the market continues to dwindle with little movement as the uncertainty the U.S and Europe remains high. On today’s agenda: Canada CPI and German business climate report. Currently gold  price is  slightly rising.  

Here is a short outlook on gold and silver prices for Friday, April 20th:

Gold and Silver– April Update

Gold price declined on Wednesday by 0.7% to $1,639.6; silver also decreased by 0.59% to $31.49. During April, gold decreased by 1.93% and silver by 3.07%.

The ratio between gold and silver declined again to 51.48. During April the ratio remained nearly flat 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).

Ratio Gold price forecast & silver prices 2012 April 20

On Today’s Agenda

German Business Climate Survey: This survey estimates the monthly changes of the business climate of Germany. If this survey will continue to show progress in the German economy it may positively affect the Euro; the Euro is strongly and positively linked with bullion prices;

Canada’s Core Consumer Price Index: This report will refer to March 2012. In the previous report the CPI increased by 2.6% during the past 12 month up to February; the core CPI rose by 1.7%. This report could affect the direction of Canadian dollar, which is also strongly and positively correlated with gold and silver prices;

Forex / Gold & Silver Market – April

The Euro/U.S Dollar kept changing direction with an unclear trend as it did in recent weeks. Yesterday it edged up by 0.11% to 1.3138. During April Euro/U.S Dollar decreased by 1.54%; on the other hand, the “risk currencies” which tend to be linked with bullion prices including the Aussie dollar and Canadian dollar depreciated against the U.S. dollar by 0.27% and 0.44%, respectively. If the US dollar will mostly appreciate against the above mentioned currencies, this may signal gold and silver may decline.

Current Gold and Silver Prices April 20th

Gold (May 2012 delivery) is traded at $1,642.9 per t oz. a $1.5 or 0.09% increase as of 23:30*.

Silver (May 2012 delivery) is at $31.81 per t oz – a $0.037 or 0.12% decrease as of 23:02*.

(* GMT)

Daily Forecast and Analysis  

Gold and silver prices kept zigzagging from gains to losses and with little movement along the way. Today may not be much different and could result in another modest shift. If the German survey will be positive and there won’t be dramatic negative news from Europe the market could rally and drag along with it bullion prices.

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


09:00 – German Business Climate Survey

13:00 – Canada’s Core CPI

For further reading: