Gold and Silver Outlook for June 26
Submitted by Trading NRG as part of our contributors program.
Precious metals had a slow start this week as both gold and silver remained nearly unchanged. This slow movement may dissipate as the week will progress. Yesterday, several U.S reports came out and all showed growth: Consumer confidence for June was up; new home sales rose by 2.1% during May; new orders of manufacturing goods also increased by 3.6% during May. These positive reports may suggest the U.S economy is keep progressing, which will raise the odds of the Fed taper QE3 by the year’s end. This, in turn, is likely to drag down gold and silver prices. The current price of gold, which is well below the $1,300 is already starting to affect gold mines inSouth Africa: Some mines need at least $1,400 per ounce of gold to remain in business. Will gold and silver prices resume their downward trend? On today’s agenda: Gfk German Consumer Climate survey and last estimate of U.S GDP first quarter of 2013.
On Tuesday, gold inched down by 0.15% to $1,274.9; Silver edged up by 0.17% to $19.53. During June, gold declined by 8.45%; silver, by 12.16%.
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The ratio between the two precious metals slipped on Tuesday to 65.29. During June, the ratio rose by 4.22% as gold out-performed silver.
On Today’s Agenda
Gfk German Consumer Climate Survey: This survey estimatesGermany’s consumers’ changes in past and future economic conditions (on a monthly basis) as of June. In the recent report for May 2013, the climate index rose to 6.5;
Third Estimate of U.S GDP for 1Q 2013: In the first estimate the U.S GDP rose by 2.5% in the first quarter; in the fourth quarter the GDP grew by 0.4%. If there will be a sharp change in the growth rate from second to the third Q1 estimate, this could affect precious metals prices;
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