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 18th to June 22nd;
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 15th 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 18th and June 22nd.
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/
No comments:
Post a Comment