Gold & Silver Prices – Daily Outlook 29 June

Gold and silver prices finished the day with rises and they continue today this upward trend. Today the Greeks will vote on the budget cuts.  Yesterday the US confidence report was published which might have affected the gold and silver prices.

Let’s examine the news of the day related to the precious metals market for today June 29th:

Gold and silver prices – June

Gold price halted its three days falls and rose on Tuesday, June 28th by 0.25% to $1,500.

Silver price also rallied on Tuesday by 0.16% to $33.65.These rises are very modest so they continue to demonstrate a slow paced changes.

During June, gold price decreased by 2.4%, and silver price declined by 12.1%.

The chart below shows the normalized gold and silver prices (May 31st 2011=100).

It shows how silver price tumbled down in three main steps: at the beginning of the month, at the middle and at the end. Gold price, on the other hand, didn’t change much during most of June, but during last week gold price also fell sharply and in recent days it remained nearly unchanged.


Gold prices forecast & silver price outlook 2011 JUNE 29

The gold to silver ratio: As of Tuesday, June 28th the ratio between gold and silver prices also didn’t change much and reached 44.58; during June this ratio increased by 11.1%, which means that during June gold price has outperformed silver price.

Gold prices forecast & silver price outlook ratio 2011 JUNE 29

US consumer confidence declined in June

The negative news delivered yesterday in which the consumer confidence index has declined during June, might have also affected gold and silver prices to rise; according to a paper by Roache et. al (2008) a paper on the effects of news on commodities prices including gold prices, there is a negative significant relation between news of “consumer confidence” and gold prices, i.e. if there is “bad news” and the consumer confidence index declined, it could have a positive effect on gold prices and the later will rise.

Currently, this seems to be the case as gold and silver prices are traded up.


US Dollar and Gold and silver prices – June update

The Greek parliament will vote on the major budget cuts proposed by Greece’s Prime Minister George Papandreou. If Greece won’t approve this vote, it could result in the European Union not approving the recent bailout funds Greece needs to avoid default of its loans.

It’s not clear if this news will affect gold and silver prices via their relation with major exchange rates including Euros to US dollar, but if this news will have a substantial effect on the Euro, it might also affect gold and silver prices.


Current Gold and Silver prices

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

The current gold price, short term futures (July 2011 delivery) is traded at $1,509.7 per t oz. with a $9.5 increase or 0.63% as of 11:04*.

Current silver price, short term futures is at $34.31 per t oz – a $0.658 gain or 1.96%, as of 11:05*.

The current ratio of gold to silver prices is at 43.98.

(* GMT)

Gold and silver prices Outlook:


Gold and silver prices started to bounce back after their recent s falls, maybe due to the US consumer confidence report and perhaps also due to the recent depreciation of US dollar.

I still speculate that in the mid term gold prices will remain near the $1,500 mark and silver price might level out at $30-35 mark.

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


13.00 – Canadian Core CPI

15:00 – U.S. pending home sales

15:30 – EIA report about Crude oil inventories


8:00 – ECB conference Trichet speaks

09.00 – Monetary developments in the euro area

13:30 – Canada GDP by industry

13:30 – Department of Labor report – U.S. unemployment claims

15:30 – EIA report about Natural gas storage

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