Gold & Silver Prices Outlook – 30 March

The gold and silver prices didn’t do much yesterday as they have declined by a moderate rate of 0.27%, each.  This was the first decrease for silver prices this week and the second consecutive for gold prices.

Let’s examine the news and events that might affect current gold and silver prices as of March 30th:

Turmoil in Middle East – update

The fights between the rebels and Gaddafi’s troops progress with no clear sight of a detente in the near future. The US forces are planned to relinquish the command of the Allies’ operation in Libya to NATO. See here for more news and updates about the turmoil in the Middle East and its affect on commodities’ markets.

Gold and Silver prices during March 2011

The month of Mach continues to show so far little change in gold prices. On the other hand, silver price is still high compare to the beginning of the month even though its price didn’t change much in the last several days.

As seen in the chart below, silver prices rose during March up to date, (March 29th) by 7.4%.; gold prices fell by 1.0%.


Gold and Silver prices normalized 2011 up to March 29

The gold to silver ratio: as of Tuesday, March 29th the ratio between gold and silver prices remained unchanged at 38.32 – the lowest level this month.


Gold and Silver prices ratio 2011 up to March 29

Current Gold and Silver prices

European markets currently present inclines in major precious metals prices:

The current gold price, short term futures (April 2011 delivery) is traded at 1,420.6 USD / t oz. a 3.1$ incline or a 0.22%, as of 11.58*.

Current silver price, short term futures is at 37.5 USD / t oz – a 0.513 increase or a 1.39%, as of 11.57*.

(* GMT)

Gold and silver prices Outlook and Analysis:

The rally of silver prices during March, mostly in the middle of the month, has diminished in the last several days. The upward trend might have been fueled by the turmoil in Japan and the involvement of US and several European countries in Libya. These events raised the uncertainty in the financial markets and might have affected these countries’ exchange rate (YEN, USD).  Yet there is little correlation among these currencies and silver or gold prices daily percent changes, e.g. the correlation (daily percent change) between USD/YEN and silver prices during March was -5.7%, for gold prices it’s -12.8%.

I still speculate that gold prices will continue to show little price changes and no clear trend during the remainder of the month.

As for silver price, its rally will continue to slow down in the coming days as it did in the past week.

Here is a reminder of the top news and reports that are published today and tomorrow (all times GMT):


15.30 – EIA report about Crude oil inventories


13.30 – Department of Labor report – US unemployment claims

13:30– Canada GDP by industry

15.30 – EIA report about Natural gas storage


For further reading (in this site):