Gold & Silver Prices Outlook –29 March

The gold prices continue to dwindle with no apparent trend while silver prices slow down their rally from last week.

Let’s examine the changes in current gold and silver prices as of March 29th:

Gold and Silver prices during March 2011

The month of Mach showed so far little to no change in gold prices. On the other hand silver prices showed strength as they rose during the month.

As shown in the chart below, silver prices rose during March up to date, (March 28th) by 7.7%.; gold prices fell by 0. 7%.


Gold and Silver prices normalized 2011 up to March 28

The gold to silver ratio: as of Monday, March 28th the ratio between gold and silver prices reached 38.32 – the lowest level this month.


Gold and Silver prices ratio 2011 up to March 28

Current Gold and Silver prices

European markets currently start off with declines in major precious metals prices:

The current gold price, short term futures (April 2011 delivery) is traded at 1,416.4 USD / t oz. a 4.9$ decline or a 0.34%, as of 10.14*.

The current silver price, short term futures is at 36.65 USD / t oz – a 0.438 decrease or a 1.118%, as of 10.15*.

(* GMT)

Gold and silver prices Outlook and Analysis:

The rally of silver prices during March, mostly in the middle of the month, starts to diminish. This upward trend might be an indication of hot and speculative money entering the market and betting on silver – the cheapest among precious metals – over gold; this move might be because of the rising uncertainly in the financial and commodities markets that is fueled by the war in Libya, the uprising in Yemen, Syria and Bahrain, and the tsunami attack on Japan.

On the other hand, in regards to the Japan’s role in affecting silver and gold prices, there is little evidence to support this claim, because when examining the daily percent changes, there is little correlation among gold and silver prices and Yen with -12.1% and -4.5%, respectively.

I speculate that we will probably continue seeing gold prices stabilizing with little changes and no clear trend during the remainder of the month.

As for silver price, its rally might continue, however its growth rate is likely to diminish as the week will progress.

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


9.30 – Great Britain Balance of Payments


15.30 – EIA report about Crude oil inventories




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