Gold & Silver Prices Outlook – 10 May

Gold and silver prices are currently traded with rises for the second straight day. Will these rises continue throughout the week? Let’s examine the precious metal market for May 10th:

Gold and silver prices – May

During May, gold price decreased by 3.4%, while silver price declined by 23.6%. Notice in the chart below, in normalized terms (100= May 2nd) silver and gold prices are still traded very low compared to their initial price level they started at the beginning of May.

Gold prices forecast & silver price outlook 2011 MAY 10 Gold prices bounced back yesterday and passed again the 1,500$ mark and reached 1,503$, an incline of 0.78%.

Silver price also bounced back and reached yesterday 37.12$ a rise of 5.18%.

The gold to silver ratio: As of yesterday, May 9th the ratio between gold and silver prices fell to 40.50. The ratio could be interpreted as one troy ounce (31.1 gram) of gold is worth 40.50 troy ounces of silver.


Gold prices outlook & silver price forecast ratio 2011 MAY 10

The gold to silver ratio rose very rapidly by over 26.5% during May. This shift in trend is the first one in 2011.

The effect of exchange rates on precious metals

During last week, silver and gold prices fell rapidly, in part, due to the appreciation of the US dollar compared to major.

In the weeks to come the high volatility in Euro/US dollar exchange rate may affect other exchange rates and consequentially the gold and silver prices:

(From the Euro side)

(From the US dollar)


These factors might continue to affect gold and silver prices and as these currencies will fluctuate (mainly the US dollar) it may affect gold and silver prices as well.

Update from Middle East

NATO continues to bomb Libya’s capital – Tripoli; also the rebels have managed to take control of the west coast road of city of Misrata where Gaddafi’s forces controlled in the past couple of months.

See here for a more detailed update on Middle East and its effect on commodities’ markets.

Current Gold and Silver prices

European markets show major precious metals prices are traded at rises:

The current gold price, short term futures (June 2011 delivery) is traded at 1,511 USD / t oz. a 7.8$ increase or 0.52%, as of 08.44*.

Current silver price, short term futures is at 37.91 USD / t oz – a 0.794 incline or 2.14%, as of 08.45*.

(* GMT)

The current ratio of gold to silver prices is at 39.8.

Gold and silver prices Outlook and Analysis:

The freefall of silver prices managed to bounce back as the effect of the CME margin rise in silver prices starts to dissipate. The effect from last week’s increase in US dollar against major currencies also seems to be over for now. Therefore, I still speculate that silver prices, much like major other commodities, will continue their comeback. This comeback however won’t last a long time and is likely to moderately affect silver during the week.  

Gold prices didn’t suffer from a downfall as silver prices did last week. Nonetheless, gold price much like silver is likely, in my opinion, to continue to moderately incline.

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


Chinese Trade Balance report

3.00 – Chinese CPI


13.30 –Canadian Trade balance

13.30 – Report on American Trade balance

15.30 – EIA report about Crude oil inventories


For further reading (in this site):