Gold and silver started off the week with very sharp gains. Yesterday’s gains were the sharpest this month (so far), which only goes to show how February is much less volatile than January.. Today, Euro Area Manufacturing PMI report will be published along with the Minutes of the last MPC Meeting, and the U.S. Existing Home Sales.
Gold sharply increased by 1.89% to $1,758.5; silver also rose by 3.66% to $34.50. During February, gold rose by 1% and silver by 3.72%.
On Today’s Agenda
U.S. Existing Home Sales: in the previous report regarding December the number of homes sold rose by 5% to a seasonally adjusted annual rate of 4.61 million home sales (see here the recent review);
Euro Area Manufacturing PMI (January 2012): In the recent flash report regarding January 2012, the Euro Zone Manufacturing PMI changed direction and reached 50.4 â€“ a move toward the positive for the first time in five months. This report will provide an indicator to the economic development of the Euro zone’s manufacturing conditions;
Forex / Gold & Silver’s February
Yesterday, the AUD and CAD also depreciated against the U.S. dollar by 0.86% and 0.34%, respectively. The correlation between AUD, CAD and metals is still strong. Therefore, if the AUD and CAD will continue resume their upward trend; it could indicate that precious metals will also trade up.
Gold and silver started off the week with very sharp gains; this rally might be related to the recent development in Europe regarding the approval of the Greek bailout package and the effect it had on the Euro and other currencies on Monday when the market had anticipated this news. The upcoming reports regarding the U.S. home sales and EU manufacturing PMI might affect the direction of gold and silver via their relation with USD and Euro.
For further reading:
What Are the Potential Outcomes for Gold Price in 2012?