Gold and silver prices tumbled down again during
yesterday along with other commodities prices. The new elections in
Greece will be held on June 17. In the meantime the ECB temporarily stopped lending to several Greek banks.
Did the minutes of the recent FOMC meeting suggest another QE program on the way? I don’t think so.
On a positive note Japan’s GDP expanded by a higher rate
than expected of 4.1% in annual terms during Q1 2012 (1% growth in Q-O-Q
terms).
The U.S housing starts rose by 2.6% in April.
On today’s agenda: U.S. Jobless Claims Weekly Update,
Philly Fed Manufacturing Index and Spanish 10 Year Bond Auction will be
held. Currently precious metals prices are rising.
Daily Outlook for May 17th
Gold and silver prices sharply declined
again yesterday and thus both metals completed a four day consecutive
fall. But currently bullion prices are rising. This might be stems from
further speculation of the FOMC’s next step and perhaps even the
possibly of another QE program. I think it’s too soon to determine
whether there will be QE3 in the near future and the current progress of
the U.S economy from the GDP and Labor point of view doesn’t seem to
warrant another stimulus plan. The progress in Japan’s economy might
also play a role in the rally of commodities prices. Finally the
upcoming U.S reports mainly the Philly Fed and Jobless claims may affect
not only the US dollar but also bullion market.
Here is a reminder of the top events and reports that are planed for today and tomorrow (all times GMT):
Today
Tentative – Spanish 10 Year Bond Auction
13:30 – U.S. Jobless Claims Weekly Update
15:00 – Philly Fed Manufacturing Index
15:30 – EIA U.S. Natural Gas Storage Update
Tomorrow
Tentative – GB 10 Year Bond Auction
13:00 – Canada’s Core CPI
All Day – G8 Meeting
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