Gold & Silver – Daily Outlook April 25
Gold and silver didn’t do much yesterday but this may change today. The statement of the recent FOMC meeting will be released. Furthermore, the FOMC projection on the U.S economy will also be published. The release of these reports will be followed with a press conference. These events may have a substantial effect on the bullion market as was the case in the previous FOMC meeting. Let’s examine the situation and determine how the FOMC may affect the metals market. Additional items on today’s agenda include: U.K GDP for Q1 2012, U.S core durable goods report, ECB President Draghi speaks.
- Barrick Prepares For Sluggishness In Gold Prices As Fed Raises Interest Rates
- Weakness In Commodity Prices Presents An Opportunity To Precious Metal Streaming Companies
- Barrick Continues To Make Smart Moves In Response To Subdued Gold Pricing Environement
- Barrick Gold’s Q3 Earnings Review: Cost Reduction Partially Offsets Impact Of Lower Gold Prices
- Barrick Gold’s Q3 Earnings Preview: Lower Gold Prices To Negatively Impact Results
- The Fed’s Decision To Keep Interest Rates Unchanged Is A Welcome Reprieve For Gold Miners
Gold bounced back on Tuesday by 0.69% to $1,643.8; silver much like gold increased by 0.71% to $30.82.
On Today’s Agenda
Statement of recent FOMC meeting: I think the FOMC won’t decide on another stimulus plan, especially since the U.S’s economic progress is still moving up (e.g. the U.S labor market and U.S GDP are still growing); the FOMC statement may affect the strength of US dollar and more than that it will affect gold and silver;
Forex / Bullion Market
The Euro/USD also rallied on Tuesday by 0.31% to 1.3197; furthermore, the “risk currencies” which tend to be correlated with metals including the CAD also appreciated by 0.42%. The recent disappointing U.S consumer confidence report and U.S home sales may have had something to do with the depreciation of the USD during yesterday. If the USD will change direction and appreciate against these rates especially if the FOMC won’t come up with another QE program, this may signal gold and silver will tumble.
The upcoming statement of the recent FOMC meeting and the Fed’s economic projection of the U.S may have a substantial effect on the USD and bullion. Since the last FOMC meeting in March, there were several U.S reports that showed some signs of slowdown, most notably the recent non-farm payroll report, in which the labor force grew by only 120k. So the U.S economy might be slowing down. For now I think there isn’t enough for the Fed to come up with another stimulus plan.
This gold and silver prices outlook was first presents in Trading NRG
For further reading: Gold and Silver Weekly Outlook for April 23-27