Gold and silver prices continue to remain high and start to pick up at a very slow rate. The concerns over the Greek debt crisis that occupied the news in the last few days seem to have had little affect on gold and silver prices. The main publications of the day will be the core retail sales of Canada and the U.S. existing home sales.
Let’s examine the news of the day related to the precious metals market for today June 21st:
Gold and silver prices – June
Silver price also inclined on Monday, June 20th by 0.9% to $36.07.
During June, gold price increased by 0.3%, but silver price declined by 5.8%.
The chart below shows the normalized gold and silver prices (May 31st 2011=100).
The gold to silver ratio: As of yesterday, June 20th the ratio between gold and silver prices continue to hover around the 43 mark as it dropped yesterday to 42.75; during June this ratio inclined by 6.5%, which means that gold price has outperformed silver price during June.
The chart below also shows that gold and silver prices are still very heavily correlated (daily percent changes) and their relation continues to be stable and high.
The Euros to US dollar and crude oil prices
The recent concerns over Greek debt has proven to have little to no affect on the gold and silver prices; as the Euro/USD fluctuated very sharply mainly during last week, while gold and silver prices (as seen above), continued to rise very moderately.
The upcoming report to be published today about the existing home sales, might affect the perspective of traders and might even affect USD trading, but will probably also have little affect on gold and silver prices.
Current Gold and Silver prices
The precious metals prices are currently traded with little rises in the European markets:
The current gold price, short term futures (July 2011 delivery) is traded at $1,544.2 per t oz. with a $2.2 increase or 0.14% as of 10:36*.
Current silver price, short term futures is at $36.075 per t oz – a $0.004 incline or 0.01%, as of 10:36*.
The current ratio of gold to silver prices is at 42.80.
Gold and silver prices Outlook:
Gold and silver prices continue to crawl up after they declined, mainly silver price, at the beginning of the month.
I still think that in the mid term gold and silver prices will continue to incline.
Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):
2:30 – Monetary Policy meeting Australia’s Bank
13:30 – Core retails sales Canada (April 2011)
15:00 – U.S. existing home sales
15:30 – EIA report about Crude oil inventories
17:30 – Decision on Federal Reverse’s Interest Rate
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