During last week, gold and silver didn’t do much as gold slipped while silver edged up. There were several reports that were published but none of them seem to have had a substantial impact on precious metals: the Philly Fed Index rose but was still negative, i.e. the manufacturing conditions haven’t improved. Euro Area GDP contracted by 0.2% during Q2 2012.
The price of gold slipped during last week by 0.21%; further, during said time the average rate reached $1,611.98 /t. Gold finished at $1,619.4 /t. oz. Silver, on the other hand, edged up on a weekly scale by 0.09%, while its average rate slipped by 0.15% to $28.00/t oz. Furthermore, during last week the SPDR Gold Shares (GLD) also edged down by 0.3% and settled by August 17th at 156.72.
The video report has an outlook of gold and silver for the main publications and events that may affect precious metals between August 20th and August 24th. Some of these reports include:
Wednesday – Minutes of July’s FOMC Meeting: Following the latest FOMC meeting, in which it was decided to keep the monetary policy unchanged without introducing any additional stimulus plans, the bullion market reacted to this news – bullion declined the next day. The minutes of the recent FOMC meeting might add some insight behind this non-decision and the future steps of the FOMC;
Thursday – U.S. New Home Sales:; in the previous report the sales of new homes declined to an annual rate of 350,000 – a 8.4% drop (month over month); if the number of home sales will continue to fall, it may further indicate a sign of little recovery, if at all, in the U.S real estate market which may also affect the strength of the US dollar;
In conclusion, I guess precious metals will continue to move in their respective range they have been trading in the past several weeks. These precious metals might resume their general downward trend especially if the minutes of the FOMC won’t offer any clues to the future steps of the FOMC. There are several other reports that could affect precious metals rates to move in different directions: if the U.S housing market – the new and existing home sales reports– will continue to show little progress this could positively affect bullion rates; if the manufacturing PMI reports for China and EU will remain below the 50 mark, this could adversely affect commodities prices. There are renewed guesses that EU and China will issue, in the near future, a stimulus plan. If there will be actual news to support these guesses, then this may result in commodities trading up.
For further reading: Weekly Outlook Financial Markets for August 20-24