It could take time until gold and silver prices will recover from their plunge on Thursday following the FOMC’s decision to extend operation twist by $267 billion until the end of 2012 and after the Fed had revised down its projection of U.S GDP growth for 2012 and 2013. On the other hand the speculations are running high on the results of the EU Summit to be held on June 28 and 29. Some already suspect the results of the Summit will be disappointing. If the Summit will reach an agreement about the debt crisis including the future of Greece in the EU, this could affect the Euro/USD currency pair. Currently gold and silver are rising. On today’s agenda: U.S new home sales.
Here is a short analysis for gold and silver for Monday, June 25th:
Precious Metals –June Update
Gold price edged up on Friday by 0.09% to $1,566.9; silver declined again by 0.65% to $26.72. During the month gold edged up by 0.17% and silver fell by 3.72%.
The chart below shows the normalized rates of these precious metals during June (normalized to 100 as of May 31st). The chart shows how both gold and silver declined mainly during last week.
The ratio between the two metals rose again on Friday to 58.63. During the month the ratio rose by 4.04% as silver has slightly under-performed gold.
On Today’s Agenda
U.S. New Home Sales: in the previous monthly report regarding April 2012, the number of new home sales increased by 3.3% to an annual rate of 343,000; if the number of home sales will continue to rise, it may further indicate a recovery of the U.S real estate market which may also affect the strength of the US dollar.
Currencies / Gold & Silver Market – June Update
The Euro/US Dollar rose on Friday by 0.24% to 1.257. During the month (UTD) the Euro/U.S Dollar increased by 1.65%. Furthermore, other exchange rates including the Aussie dollar and Canadian dollar also appreciated on Friday against the USD by 0.3% and 0.5%, respectively. The recovery of Euro and Aussie dollar coincided with the rally of gold prices on Friday. If the U.S dollar will continue to depreciate against these currencies, it may pull up bullion rates. Currently the Euro is falling against the USD.
Current Gold and Silver Rates as of June 25th
Gold (July 2012 delivery) is traded at $1,572.6 per t oz. a $5.7 or 0.36% increase as of 06:30*.
Silver (July 2012 delivery) is at $26.85 per t oz – a $0.126 or 0.47% increase as of 06:32*.
(* GMT)
Daily Outlook for June 25th
Gold and silver might start off the week on a positive note and slowly bounce back from their tumble from last week. The upcoming US home sales report could affect not only the USD but also bullion rates, especially if the report will show significant change. If the Euro will continue to rise as it did at the end of last week it could also positively affect bullion rates.
Here is a reminder of the top events and publications that are scheduled for today and tomorrow (all times GMT):
Today
15:00 – U.S. New Home Sales
Tomorrow
07:00 – German Consumer Climate
09:30 – Great Britain Net borrowing
10:00 – Great Britain Inflation Hearings
15:00 – U.S Consumer Confidence
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