Gold & Silver Prices Outlook – 14 April

Yesterday, gold prices bounced back after they have declined on Monday and Tuesday. Silver prices didn’t do much this week, after they have risen all days last week.

Let’s examine the news and events that might affect current gold and silver prices as of April 14th:

Gold according to Goldman Sachs

It was reported that Goldman Sachs advised its clients to take off the table their profits on major commodities, such as crude oil and platinum, since they are priced high. This advice might be responsible to some of the declines in oil prices in recent days; however it didn’t have much of an effect on gold or silver prices.

G7 meeting

G7 is to convene today, in preparation for the G20 meeting tomorrow.  The G7 comprise of the United States, Britain, France, Germany, Italy, Canada and Japan. In the G7 Meeting these countries plan to talk about the economic ramifications of the tsunami disaster in Japan, the high oil prices and the growing debt concerns in several countries such as Britain.

Gold and silver prices April 2011

The April rally of precious metals came to a halt in the last couple of days, mainly for gold.

In the chart below are the changes of gold and silver prices during April 2011, normalized to 100=April 1st 2011; the chart shows how silver prices have outperformed gold prices mainly since the end of last week:


Gold and Silver prices normalized 2011 up to April 14 2011

As of April 13th, Silver price has risen by 6.6%, while gold price increased by 1.9%.

The gold to silver ratio: As of yesterday, April 13th the ratio between gold and silver prices didn’t change much as it reached 36.18.

Gold and Silver prices ratio 2011 April 14

The correlations of gold and silver prices (daily percent changes) with AUD/USD are still the highest among the major currencies with 0.348 for gold and 0.405 for silver.   Since Australia is among the world’s leading exporter of gold, it’s currency’s appreciation against the USD coincide with the strengthening of gold and silver prices.

Correlations Gold & Silver Prices and major currencies Dec 2010- April 14 2011


Update from the Middle East

There isn’t much progress in the war in Libya between the rebels and Gaddafi.

See here for a more detailed update on Libya and its affect on commodities’ markets.

Current Gold and Silver prices

U.S. markets show major precious metals prices are traded at rises:

The current gold price, short term futures (May 2011 delivery) is traded at 1,469.1 USD / t oz. a 13.5$ increase or 0.93%, as of 17.04*.

Current silver price, short term futures is at 41.325 USD / t oz – a 1.088 increase or 2.7%, as of 17.04*.

(* GMT)

The current ratio of gold to silver prices is at 35.5.

Gold and silver prices Outlook and Analysis:

I speculate that gold prices will continue to fluctuate with a moderate rise as the week will progress. The same goes for silver prices.

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


13.30 – Department of Labor report – US unemployment claims

15.30 – EIA report about Natural gas storage

All day – Meeting of G7


All day – Meeting of G20

All day – Meeting of IMF and World Bank


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