Gold and silver prices managed to level out on Friday after their sharp fall on Thursday. On Friday the U.S trade balance report came out and showed the goods and services deficit fell during April to $50.1 billion. The recent news from Europe of the recent Spanish bailout may continue to occupy the news and thus may affect not only the Euro but also bullion rates. The recent news is that the €100 billion bailout will be channeled via FROB bank rescue fund and Spain will bear the risk on this fund; it’s still unclear how this bailout will take place and who exactly will pay for it. For now it seems the market is reacting to this news positively as the Euro/USD is rising. Furthermore, currently gold and silver are also rising. On today’s agenda: China New Loans, French Industrial Production, FOMC Members Lockhart and Pianalto will give a speech.
Here is a short analysis for gold and silver for Monday, June 11th:
Precious Metals –June Update
Gold price edged up on Friday by 0.21% to $1,591; silver increased by 0.2% to $28.47. During the month gold traded up by 1.74% and silver by 2.57%.
The chart below presents the normalized rates of these metals during the month (normalized to 100 as of May 31st).
The ratio between the two metals edged up on Friday to 55.9. During the month the ratio fell by 0.81% as silver has moderately out-performed gold.
On Today’s Agenda
French Industrial Production: this news could indicate the development ofFrance’s output and consequently may affect the Euro/USD exchange rate and commodities prices; last time, the industrial output declined by 0.9%;
China New Loans Monthly Update: According to the previous report, the total loans declined; the recent rate cut of BOC might help rally the amount of loans taken in the months to follow;
FOMC Member Lockhart Speaks: FOMC member Lockhart will give a speech about the U.S economy and monetary policy. If he will suggest of the future steps of the FOMC it might affect bullion markets;
FOMC Member Pianalto Speaks;
Currencies / Gold & Silver Market – June Update
The Euro/US Dollar declined on Friday by 0.34% to 1.2517. During the month (UTD) the Euro/U.S Dollar increased by 1.22%. On the other hand, other exchange rates such as the Aussie dollar and Canadian dollar slightly appreciated during Friday against the USD by 0.23% and 0.13%, respectively. If the U.S dollar will change direction and depreciate against these currencies, it may pull up bullion rates. Currently the Euro is increasing against the USD.
Current Gold and Silver Prices as of June 11th
Gold (July 2012 delivery) is traded at $1,604.0 per t oz. a $12.6 or 0.79% increase as of 23:02*.
Silver (July 2012 delivery) is at $28.855 per t oz – a $0.384 or 1.35% increase as of 23:02*.
(* GMT)
Daily Outlook for June 11th
Bullion prices leveled out after their plunge on Thursday; this slow movement in bullion rate might continue throughout the day; the recent news from Spain of the bailout fund might positively affect the Euro/USD and in turn also help rally precious metals prices.
Here is a reminder of the top events and publications that are scheduled for today and tomorrow (all times GMT):
Today
Tentative –ChinaNew Loans
07:45 – French Industrial Production
17:00 – FOMC Member Lockhart Speaks
23:00 – FOMC Member Pianalto Speaks
Tomorrow
Tentative –IEA monthly oil report
Tentative –OPEC Monthly Report
09:30 –Great BritainManufacturing Production
19:00 –U.S.Federal Budget Balance
2:10 –Bank ofAustraliaGovernor Stevens speaks
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