Gold and Silver – Daily Outlook for November 22nd

The precious metals market continued to cool down as the prices of gold and silver fell down again for during yesterday’s trading. The recent economic reports from the U.S showed a mixed message regarding the progress of the U.S economy. Producer price index fell by 0.2% to an annual rate of only 0.3%. The PPI excluding energy and food slightly rose by 0.2% during last month. This means, prices aren’t rising. Moreover, the Philly fed index fell during November from 19.8 to 6.5. This is another sign for little progress in the U.S economy. Conversely, jobless claims fell by 21k to 323k. This is a positive sign for the progress in the labor market. In any case, the decline of precious metals coincided with the depreciation of several currencies against the USD indulging Aussie dollar and Japanese yen.  On today’s agenda: Canada CPI, Canada Core Retail Sales, and German Ifo Business Climate Index.

Here is a short review for precious metals for Friday, November 22nd:

Gold and Silver – November Review                         

On Thursday, gold declined again by 1.14% to $1,243.6; Silver, by 0.62% to $19.93 – its lowest rate since the beginning of August. During November, gold fell by 6.04%; silver, by 8.69%. In the chart below are the normalized rates of gold and silver for 2013 (normalized to 100 as of October 31st). The prices of gold and silver have declined during the month.

Gold and silver Chart 2013  November 22The ratio between the two precious metals slipped on Thursday to 62.39. During November, the ratio rose by 2.9% as silver has moderately under-performed gold.

Gold  to silver ratio Chart 2013  November 22On Today’s Agenda

German Ifo Business Climate Index: This index comprises of the shifts (on a monthly basis) in the manufacturers, builders, wholesalers, and retailers in Germany as of November. In the last report regarding October 2013, the business climate index inched up from 107.7 in September to 107.4 in October;

Canada CPI: According to the last report, the annual core CPI rose to 1.3% and the CPI increased to 1.1% in the past twelve months;  if the inflation continues to rise, this may affect the BOC’s monetary policy;

Canada Core Retail Sales (September 2013): This report will refer to the manufacturing sales in Canada as of September. In the previous report regarding August 2013, manufacturing sales rose by 0.4%;

Currencies / Precious Metals Correlations – November Update

On Thursday, the Eur/USD currency pair changed direction and slightly rose by 0.32% to 1.3482. During November, the Eur/USD slipped by 0.75%. Conversely, other currencies such as the Aussie dollar depreciated yesterday against the U.S dollar by 1.07%. The correlations among gold, silver and Euro remained robust in recent weeks, e.g. the correlation between the Euro/USD and gold price is 0.50 during October/November.  

Correlation Gold and EURO USD 2013 November 22

Here is a reminder of the main events and publications that are scheduled for today (all times GMT):


09:00 – German Ifo Business Climate Index

13:30 – Canada CPI

13:30 – Canada Core Retail Sales

For further reading: