Its was not a good year so far for bullion traders as the prices of both gold and silver didn’t do much or well during passing months. Last week gold price started off strong but soon changed direction, declined and finished the week only slightly above its initial starting price for the week. Silver price has done even worst and declined on a weekly scale. The renewed fears and concerns in Europe and the possible slowdown in the U.S labor market may have been among the factors pulling gold and silver prices up during last week. This sentiment may continue this week as there are several U.S related reports including housing starts, Philly Fed and existing home sales. If these reports will be positive or better yet very positive then I speculate bullion prices will decline; alternatively if ECB President will talk of another LTRO or SMP, and if Germany will continue to show growth (on Tuesday German ZEW economic sentiment report and on Friday German Business Climate Survey) then the Euro may rally which will bring gold and silver prices up again. So which of these events will prevail in affecting bullion? When in doubt go with the U.S especially when it comes to gold and silver.
Here is a short overview and a forecast for the upcoming week of April 16th to 20th; this includes a short description of the main news items, public speeches, and events that may have affect precious metals prices during last week.
In this projection I use charts and a fundamental analysis to examine how the upcoming events and financial publications during the upcoming week may affect the daily percent changes of gold and silver prices.
Gold price slightly increased during last week by 1.85%; Silver price, moderately fell on a weekly scale by 1.07%;
During last week the U.S jobless claims showed an increase in initial claims; this news may have helped precious metals prices to rise. But by Friday China’s GDP came out and showed a growth of only 8.1% – the lowest since 2009. This news turned the direction of gold and silver and they sharply decreased on Friday.
The U.S PPI and CPI also were published on Thursday and Friday, respectively but didn’t seem to have much effect on bullion prices.
During last week the Euro edged down against the U.S dollar by 0.15% (on a weekly scale); on the other hand, other “risk” currencies such as the Australian dollar slightly appreciated against the U.S dollar during said time. The opposite direction of the Euro/USD compared with the direction of AUD/USD may have been among the factors to pull gold and silver prices into different directions and thus present an unclear trend during last week for both metals.
The video link above provides a broad outlook for the main news, public speeches and events that may affect gold and silver prices during the week of April 16th to April 20th; the video includes reviewing the main reports, events, decisions and news items that will come out during the upcoming week. Some of these reports and events include: U.S. retails sales monthly report, U.S housing starts, Canada’s rate decision, ECB President speech, MPC meeting, Philly Fed Manufacturing Index, U.S existing home sales monthly update and U.S. jobless claims weekly update (just to name a few).
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