Let’s examine the mains news that might affect the changes in the current gold and silver prices as of March 15th:
Gold and Silver prices in 2011
Up to date, gold prices didn’t rise much as they are at a similar level as they were back in the beginning of the year, while silver prices rallied and soared by over 15% from beginning of the year up to date as seen in the graph below:
Japan’s tsunami attack ramifications
The Nuclear Reactor in Fukushima, located 150 km north of Tokyo suffered a fourth explosion. There are radioactive leaks in the reactor, and the current concern is that strong winds might bring the radioactive radiations to Tokyo.
Turmoil in the Middle East
The Libyan turmoil continues and currently there are attempts to end the air assaults on the Libyan rebels done by Qaddafi‘s air force.
The Arab League supports the no-fly zone, to be enforced by the NATO if the UN will approve it, however the US remains hesitant.
Yesterday Saudi Arabia sent troops to Bahrain in an attempt to stabiles the region and to avoid an escalation in the regions.
Current Gold and Silver prices
European markets currently start off with drastic falls in major precious metals prices:
The current gold prices, short term futures (April 2011 delivery) are traded at 1,406 USD / t oz. an 18.8 decline or a 1.32%, as of 11.27*.
The current silver prices, short term futures are at 34.64 USD / t oz – a 1.2 decrease or a 3.35%, as of 11.27*.
Gold and silver prices Outlook and Analysis:
Yesterday, the market closed with moderate changes across the boarder. This could be because the trade in Asia decreased substantially.
If I would to speculate, the tsunami attack on Japan will continue to have adverse effect on the financial markets with fewer trades and higher volatility.
I speculate that gold and silver prices will moderately drop as the day will progress.
The gold to silver ratio: as of yesterday, March 14th the ratio between gold and silver prices reached 39.76; the ratio has been declining throughout the month of March as seen in the graph below and started at the end of January 2011. It will remain to be seen if this trend will continue.
Here is a reminder of the top news and reports that are planed for today and tomorrow that might influence the markets (all times GMT):
18.15PM – Decision on Federal Reverse’s Interest Rate
10:00AM– Euro Area core monthly inflation (February)
15.30PM – EIA report about Crude oil inventories
For further reading (in this site):
- Gold prices bounce back in February – what will be next?
- Gold & Silver Prices zigzagged all week – weekly recap 7-11 March
- Gold Prices Outlook for 2011 and Analysis of 2010