Gold & Silver – Daily Outlook May 3

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Gold & Silver – Daily Outlook May 3

Gold and silver decreased for the third consecutive business day. The recent news from Europe of the unemployment rising to 10.9% didn’t help the Euro. Today’s ECB rate decision might play a role in the forex and commodities markets. The ADP projects the U.S employment expanded by 119k during April. If tomorrow’s U.S non-farm report will show a similar result it may adversely affect the USD and consequently may help pull up bullion. Additional items on today’s agenda: U.S. ISM Non-Manufacturing PMI and U.S. Jobless Claims Weekly Report.

The full daily analysis on gold and silver for May 3rd

Gold slipped on Wednesday by 0.51% to $1,654; silver also declined by 0.92% to $30.65. The Euro/USD also declined by 0.58% to 1.3158.

On Today’s Agenda

U.S. Jobless Claims: in the previous update the jobless claims slipped to 388,000; this upcoming weekly report may affect the direction of the USD and consequently bullion;

ECB Rate Decision: during April the inflation slipped to an annual rate of 2.6%, but the EU unemployment edged up again to 10.9%;the EU GDP in the Q4 2011 contracted by 0.3% . Today, ECB might consider introducing additional monetary easing (LTRO) or perhaps an interest rate reduction; if the ECB will make a move, it may affect the Euro;

Daily Outlook

Metals continued their slow paced downward trend and this may continue today if the ECB will keep its policy and interest rate unchanged. If the upcoming U.S reports including non-manufacturing PMI and jobless claims will show progress in the U.S economy this may also help strengthen the USD and consequently moderately affect the direction of bullion.

For further reading: Gold and Silver Prices Outlook for May 2012