Gold and Silver Outlook for May 3

by Trading NRG
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Submitted by Trading NRG as part of our contributors program.

Following the Fed’s decision to keep its policy unchanged, the ECB surprised many investors and decided to lower its short term interest rate to an all time low of 0.50% – a 0.25pp reduction. This decision pulled down the Euro along with other risk related currencies such as Aussie dollar. Gold and silver prices, on the other hand, recovered from their tumble during May 1st after the FOMC decided to maintain its policy. Will gold and silver change course again? On today’s agenda: U.S. Non-Farm Payroll Report, EU Economic Outlook, U.S Factory Orders, U.S. ISM Non-Manufacturing PMI and BOC Gov Carney Speaks.

On Thursday, the price of gold increased by 1.48% to $1,467.6; Silver rose by 3.40% to $23.81. During the week, gold rose by 1.0%; silver, by 0.2%.

The decision of the FOMC to keep its policy unchanged didn’t prevent the bullion market from changing directions: on the day the FOMC concluded its meeting, the prices of gold and silver tumbled down – perhaps as analysts speculated that the Fed might cut down on its current asset program. The following day (yesterday) bullion prices rallied along with other commodities and thus nearly regaining most the loss precious metals had on May 1st.

On Today’s Agenda

U.S. Non-Farm Payroll Report: in the recent report regarding March, the labor market sharply increased again: the number of non-farm payroll employment rose by only 88k; the U.S unemployment rate edged down to 7.6%; if in the upcoming report the employment will rise by more than 150 thousand jobs, this may pull down the rates of gold and silver;

U.S Factory Orders: This report will show the shifts in U.S. factory orders of manufactured durable goods during April; in the previous report factory orders rose by 3%; this report will offer some insight regarding the growth of the U.S economy;

U.S. ISM Non-Manufacturing PMI: This monthly report will refer to the developments in the non-manufacturing sector during April 2013. For latest update, this index fell to 54.4% – this means the non-manufacturing is expanding and at a slower pace than in the previous month; this index may affect the USD;

For further reading:

Gold and Silver Outlook for May 2013

Is the Golden Era of Gold Over?

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