Gold & Silver Prices – Daily Outlook 11 July

Gold  price starts the week the same way it has ended the previous one with rises as the Euro and US economies continue to pose high risk. Today, the Canadian Housing starts and business outlook survey reports will be published; the Bank of Japan will publish its monetary policy statement and rate decision which is likely to remain unchanged.   

Let’s examine the news of the day related to the precious metals market for today July 11th:

 Gold and silver prices –July

Gold price rose on Friday, July 8th by 0.72% to $1,541 – its highest price level since June 22nd. Gold price rose for four consecutive days.

Silver price also increased that day by 0.23% to $36.54 – the highest price also since June 22nd.

During July, gold price increased by 2.6%, and silver price added 4.9%.

The chart below shows the normalized gold and silver prices (June 30th 2011=100). It shows that gold and silver prices started July with falls, but they are currently well above their initial price start from the beginning of the month.


Gold prices forecast & silver price outlook 2011 JULY 11

 The gold to silver ratio: As of Friday, July 8th the ratio between gold and silver prices is still around the 42-43 mark as it rose to 42.19; during July this ratio declined by 2.2%, which means that during July (up to now) silver price has outperformed gold price.


Gold prices forecast & silver price outlook ratio 2011 JULY 11

 US Dollar / Gold & silver prices – July update

The US dollar appreciated during July against the Euro, but depreciated against the AUD and CAD. During June, the AUD/USD and USD/CAD exchange rates were highly correlated with the daily percent changes of gold and silver prices.

These findings might suggest that the recent rally in gold and silver prices is related to the depreciation of the US dollar against these currencies.


Current Gold and Silver prices

The precious metals prices are currently traded up in the Asian markets:

The current gold price, short term futures (August 2011 delivery) is traded at $1,547.1 per t oz. with a $5.5 increase or 0.36% as of 06:58*.

Current silver price, short term futures is at $36.64 per t oz – a $0.097  gain or 0.27%, as of 06:54*.

The current ratio of gold to silver prices is at 42.22.

(* GMT)

Gold and silver prices Outlook:

Gold and silver prices continue their rally as the US labor report didn’t show well on the recovery of the US economy; furthermore, there are still concerns over the European economy despite the ECB rate decision which should have curbed gold and silver prices’ rally, but it didn’t; perhaps due to the recent waiver of ECB on collateral rules for Portugal, traders thought this move raises the risk of Euro zone that resulted in gold and silver strengthened . 

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


13:15 – Canadian Housing Starts

15:30 – Business outlook survey – Canada

Tentative – Bank of Japan – rate decision and monetary policy statement


Tentative –OPEC monthly report

13.30 –Canadian Trade balance

13.30 – Report on American Trade balance

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