Gold & Silver Prices – Daily Outlook June 25

It could take time until gold and silver prices will recover from their plunge on Thursday following the FOMC’s decision to extend operation twist by $267 billion until the end of 2012 and after the Fed had revised down its projection of U.S GDP growth for 2012 and 2013. On the other hand the speculations are running high on the results of the EU Summit to be held on June 28 and 29. Some already suspect the results of the Summit will be disappointing. If the Summit will reach an agreement about the debt crisis including the future of Greece in the EU, this could affect the Euro/USD currency pair. Currently gold and silver are rising. On today’s agenda: U.S new home sales.    

Here is a short analysis for gold and silver for Monday, June 25th:

Precious Metals –June Update

Gold price edged up on Friday by 0.09% to $1,566.9; silver declined again by 0.65% to $26.72. During the month gold edged up by 0.17% and silver fell by 3.72%.

The chart below shows the normalized rates of these precious metals during June (normalized to 100 as of May 31^st). The chart shows how both gold and silver declined mainly during last week.

The ratio between the two metals rose again on Friday to 58.63. During the month the ratio rose by 4.04% as silver has slightly under-performed gold.

On Today’s Agenda

U.S. New Home Sales: in the previous monthly report regarding April 2012, the number of new home sales increased by 3.3% to an annual rate of 343,000; if the number of home sales will continue to rise, it may further indicate a recovery of the U.S real estate market which may also affect the strength of the US dollar.

Currencies / Gold & Silver Market – June Update

The Euro/US Dollar rose on Friday by 0.24% to 1.257. During the month (UTD) the Euro/U.S Dollar increased by 1.65%. Furthermore, other exchange rates including the Aussie dollar and Canadian dollar also appreciated on Friday against the USD by 0.3% and 0.5%, respectively. The recovery of Euro and Aussie dollar coincided with the rally of gold prices on Friday. If the U.S dollar will continue to depreciate against these currencies, it may pull up bullion rates. Currently the Euro is falling against the USD.

Current Gold and Silver Rates as of June 25th

Gold (July 2012 delivery) is traded at $1,572.6 per t oz. a $5.7 or 0.36% increase as of 06:30*.

(* GMT)

Daily Outlook for June 25th  

Gold and silver might start off the week on a positive note and slowly bounce back from their tumble from last week. The upcoming US home sales report could affect not only the USD but also bullion rates, especially if the report will show significant change. If the Euro will continue to rise as it did at the end of last week it could also positively affect bullion rates. 

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

Today

15:00 – U.S. New Home Sales

Tomorrow

07:00 – German Consumer Climate

09:30 – Great Britain Net borrowing

10:00 – Great Britain Inflation Hearings

15:00 – U.S Consumer Confidence

Source; http://www.tradingnrg.com/gold-prices-outlook-silver-forecast-monday-june-25th-2012/

Gold and Silver Prices Weekly Outlook for June 25-29

Last week gold and silver prices started off with little movement but by Thursday both precious metals tumbled down. The FOMC decision to continue operation twist throughout the rest of 2012 by $267 billion and not to introduce QE3 may have been among the factors to pull down bullion rates. The Fed also revised down the U.S economic outlook which also may have dragged down commodities prices.  Several other U.S related reports came out last week and showed the U.S economy isn’t expanding: Philly Fed index declined in June to its lowest level this year; existing home sales had an upward trend during last week. U.S jobless claims didn’t change much and declined by only 2k last week. 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 news and pending home sales, GDP for Q1 2012, Euro Area Monetary Development, jobless claims, core durable goods and Canada’s GDP by Industry. 

Here is a short outlook for June 25^th to June 29^th; this includes a short description accompanied with a fundamental analysis of the main reports, publications, and events that may affect precious metals market.

Gold price plunged during last week by 3.76%; Silver, even more than gold, tumbled down on a weekly scale by 7.01%. Furthermore, during last week the SPDR Gold Shares (GLD) also fell by 3.3% and reached by June 22^nd 152.64.

The Euro declined against the U.S dollar by 0.54% (on a weekly scale); furthermore, other “risk” currencies such as the Australian dollar and Canadian dollar also depreciated against the U.S dollar by 0.11% and 0.28%, respectively. Their sharpest fall came on Thursday. The decline in the Euro/USD and AUD/USD may have been among the factors to pull down gold and silver during last week. If these currencies will continue to trade down, it could further pull bullion rates down.

In conclusion, I speculate precious metals will continue to dwindle during the upcoming week. The developments in Europe regarding the debt crisis in Spain and Greece may affect not only the Euro/USD but also bullion rates. If the Euro will continue to decline this could also pull down bullion. The upcoming reports regarding the U.S including the new and pending home sales, GDP for Q1, core durable goods and jobless claims, could affect not only the USD, but also gold and silver prices: if the U.S reports will continue be negative or won’t meet expectations it could pull up or at least curb the fall of precious metals.

Source; http://www.tradingnrg.com/gold-and-silver-prices-weekly-outlook-for-june-25-29/

Reminder of The Top Events

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

Today 

All Day – G20 Meeting
00:30 – Monetary Policy Meeting Australia’s Bank

Tomorrow 

09:30 – Great Britain CPI
10:00 –Euro Area ZEW economic sentiment
10:00 –German ZEW economic sentiment
13:30 – U.S. Housing Starts
13:30 – U.S. Building Permits
All Day – G20 Meeting
00:50 – Japanese Trade balance

Source; http://www.tradingnrg.com/gold-prices-outlook-silver-forecast-monday-june-18th-2012/

Gold and Silver Prices Weekly Outlook for June 18-22

Last week gold and silver prices didn’t do much; Gold had a steady upward trend; silver increased every day except on Thursday. Despite the testimony of Bernanke from the previous week, the speculations continue to run high of the Fed announcing next week of another stimulus plan. The upcoming FOMC meeting could stir up the markets but I suspect it will eventually be just another storm in a teacup. In Europe many anticipate for the results of the Greek elections and how this round might affect Greece leaving the EU. This upcoming week there are several reports on the agenda that may affect gold and silver prices. The main events will revolve around Greek elections and the aftermath, FOMC meeting, U.S Philly Fed index, China’s manufacturing PMI, G20 Meeting and U.S housing starts. 

Here is a short outlook for June 18^th to June 22^nd; this includes a short description accompanied with a fundamental analysis of the main news, publications, and public speeches that may influence metals traders.

Gold rose during last week by 2.31%; Silver, much like gold, increased on a weekly scale by 0.94%. Furthermore, during last week the SPDR Gold Shares (GLD) also rose by 2% and reached by June 15^th 157.84.

The Euro rose again against the U.S dollar by 0.97% (on a weekly scale); furthermore, other “risk” currencies such as the Australian dollar and Canadian dollar also appreciated against the U.S dollar by 1.59% and 0.47%, respectively. The ongoing rally 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 trade up, it could further keep bullion rates high.

In the video below there is a broad overview of the main publications, events and reports that may affect gold and silver prices between June 18^th and June 22^nd. Some of these reports and speeches include: FOMC meeting, Greek elections, ECB President speech , U.S housing starts, China’s manufacturing PMI, Japan’s trade balance, U.S existing home sales and  U.S. jobless claims weekly report (just to name a few).

In conclusion, I speculate precious metals might shift between gains and losses with an unclear trend. The results of the Greek elections could affect the Euro/USD and consequently the path of bullion rates. If the Euro will continue to recover this could help rally bullion. On the other hand the results of the FOMC meeting could affect directly gold and silver especially if the Fed will introduce another stimulus plan or even hint of its possibility in the near future. In such a case bullion is likely to rise. But I don’t think the Fed will do so and in such a case precious metals are likely to continue to dwindle. The upcoming reports regarding the U.S including the Philly Fed, housing starts, existing home sales and jobless claims, could affect not only the USD, but also gold and silver prices: if the U.S reports will continue be negative or won’t meet expectations it could further push up precious metals. Finally, if China will continue to show slowdown it may also adversely affect bullion markets.

Source; http://www.tradingnrg.com/gold-and-silver-price-forecast-weekly-analysis-for-june-18-22-2012/