Last week gold and silver prices continued to zigzag with an unclear trend until Friday when both metals along with the rest of other markets including forex, commodities and stocks hiked. The EU Summit and the conclusion from it had a lot to do with rally. Will the resolution in the EU Summit keep lowering the anxiety in the financial markets vis-à-vis the European debt crisis? Will commodities continue to rise this upcoming week? Several U.S related reports came out last week and showed a mixed trend regarding the U.S economy: the U.S consumer confidence report showed the index declined during the month. On the other hand several U.S related report, mainly related to the housing market, came out during the week and showed the U.S economy is progressing: U.S new home sales went up; pending home sales index also rose; new orders of core durable goods increased last month. U.S jobless claims remained nearly unchanged at 386,000. This upcoming week there are several publications on the agenda that may affect gold and silver prices. The main events will revolve around U.S employment report (non-farm payroll report), U.S manufacturing and non-manufacturing PMI, Euro Area interest rate decision, jobless claims, and Canada’s employment report.
Here is a short outlook for July 2nd to July 6th; this includes a short description accompanied with a fundamental analysis of the main reports, publications, and events that may affect precious metals rates.
Gold price rose during last week by 2.38%; Silver, much like gold, increased on a weekly scale by 3.32%. Furthermore, during last week the SPDR Gold Shares (GLD) also rose by 1.67% and reached by June 29th 155.19.
The Euro also rose against the U.S dollar by 0.76% (on a weekly scale); furthermore, other “risk” currencies such as the Australian dollar and Canadian dollar also appreciated against the U.S dollar by 1.73% and 0.79%, respectively. Their sharpest rise came on Friday after the EU Summit was concluded. The rise in the Euro/USD and AUD/USD may have been among the factors to pull up gold and silver during last week. If these currencies will continue to rise, it could further pull bullion rates up.
In the video below there is a broad overview of the main publications, events and reports that may affect gold and silver prices between July 2nd and July 6th. Some of these reports and events include U.S news and pending home sales, GDP for Q1 2012, Euro Area M1, M3 & private loans, jobless claims, core durable goods and Canada’s GDP (just to name a few).
In conclusion, I speculate precious metals will continue to rise during the upcoming week. The recent news from Europe regarding the debt crisis and the decision of the EU leaders might continue to affect forex and commodities markets. If the Euro will continue to increase this could also pull up bullion. The upcoming reports regarding the U.S including manufacturing PMI, and non-farm payroll report could positively affect precious metals rates if these reports will continue to show low to little growth.
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