Let’s examine the mains news that might affect the changes in the current gold and silver prices as of March 17th:
Turmoil in the Middle East
Qaddafi continues his air assault on the rebels, as his warplanes bombed the rebel’s cities. The UN Security Council will debate on taking actions against Qaddafi’s and perhaps implementing a no-fly zone.
The unrest in Bahrain and Yemen continues with reports of protests and conflicts between the police and the protestors.
Japan’s tsunami attack ramifications
The adverse affects from the tsunami attack from Friday and the recent earthquake at the East coast of Japan keeps on coming. The main concern now is with the nuclear reactor in Fukushima as there are concerns for a meltdown as the pressure in the core reactors keeps on rising. The Japanese used helicopters to pour water over the reactors in an attempt to cool them down.
Current Gold and Silver prices
US markets currently start off with mixed trends in major precious metals prices:
The current gold prices, short term futures (April 2011 delivery) are traded at 1,403.2 USD / t oz. a 7.1 incline or a 0.51%, as of 18.55*.
The current silver prices, short term futures are at 34.245 USD / t oz – a 0.227 decrease or a 0.66%, as of 18.55*.
Gold and silver prices Outlook and Analysis:
Yesterday, the market closed with sharp rises across the boarder, after falls the day before.
The uncertainty that rises from the turmoil in Japan will continue to adversely affect the financial markets. The same could be attributed to the news from the Middle East.
Since Japan has a major role in the financial market in general and in the gold market in particular, the gold and silver prices are likely to be affected by Japan’s instability.
I speculate that gold prices will continue to fluctuate throughout the day and will moderately increase, however in the short term in these times of uncertainty the market changes rapidly with no clear direction, so expect to see high volatility in these metals prices.
The gold to silver ratio: as of yesterday, March 16th the ratio between gold and silver prices reached 40.5; the ratio has been declining during March, as silver prices rose while gold prices fell up to date.
In the graph below are the normalized prices of silver and gold for the month of March. It shows that both metals, up to now, erased the gains they had in the few first days of the month.
Here is a reminder of the top news and reports that are published today and tomorrow that might affect the markets (all times GMT):
13.30PM – Department of Labor report – US unemployment claims
13.30PM – Report on US CPI
15.30PM – EIA report about Natural gas storage
9.00AM – Euro area balance of payments
10.00AM – Euro area trade of balance
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