Precious metals prices ended the week falling after they had changed directions during last week. It was reported today that Hedge funds raised their bets on commodities in anticipation of rising commodities prices due to expected growth of the U.S. economy. Greece has passed its austerity plan in its parliament. The markets seem confident Greece will now receive the next bailout package. Currently gold and silver prices are increasing. Today, Bank of Japan will publish its rate decision and monetary policy.
Here is a report of major news and events, and an analysis of metals prices for Monday, February 13th:
Gold and Silver– February Update
Gold price declined on Friday by 0.91% to $1,725.3; silver also decreased by a similar rate of 0.92% to $33.60. During February, gold declined by 0.87% while silver rose by 1.03%.
The chart below presenters the changes of gold and silver during the month (metals prices are normalized to 100= January 31st).
On Today’s Agenda
Bank of Japan – Rate Decision and Monetary Policy: If Bank of Japan will announce of another monetary stimulus plan; it could affect the Yen and commodities prices such as gold and silver prices;
Forex / Gold & Silver Market – February
The Euro/U.S Dollar also changed direction and fell on Friday by 0.66% to 1.3197. During February Euro/U.S Dollar rose by 0.87%; furthermore, other currencies such as Australian dollar also depreciated against the U.S. dollar. During recent weeks there were strong linear correlations among the EURO and Australian dollar and precious metals. If the Euro and Australian dollar will change direction and trade up today (the recent update on the Greek austerity plan might influence traders) it could indicate that metals will follow and also rally. Currently, the Euro/USD is rising.
Current Gold and Silver Prices February 13th
Gold (March 2012 delivery) is traded at $1,734.2 per t oz. a $8.9 or 0.52% increase as of 08:46*.
Silver (March 2012 delivery) is at $33.985 per t oz – a $0.381 or 1.13% increase as of 08:46*.
Gold and Silver Prices Outlook and Analysis
Gold and silver prices continue to zigzag with no clear trend as they have been doing in recent days. The recent news from Greece might bring some confidence back to the Euro and thus may also positively affect gold and silver prices during the day. The rising demand in Hedge funds for commodities might also reignite the upward trend of gold and silver prices during the week.
Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):
Tentative – Bank of Japan – Rate Decision
09:30 – Great Britain CPI
10:00 –German ZEW economic sentiment
13:30 –U.S. Retail Sales Report
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