Gold and Silver Prices Weekly Outlook for July 2-6

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. 

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.

Source; http://www.tradingnrg.com