Gold & Silver – Daily Outlook May 8th
Submitted by Trading NRG as part of our contributors program.
Gold & Silver – Daily Outlook May 8th
Gold and silver resumed their downward trend on Monday as they have declined in the past five out of sic business days. The results in the French and Greek elections may have had a slight negative effect on the Euro, which in turn may have also adversely affected commodities prices. Despite the decline in gold prices, China’s imports of gold from Hong Kong continue to surge in the first quarter of 2012. On today’s agenda: Australian trade balance report, ECB President speaks and Australian annual budget release.
The full daily outlook on gold and silver for May 8th
- Barrick Stock Trades Below Intrinsic Value Despite Firm Gold Prices And A Strong Production Outlook
- Why Barrick Stock Is Underperforming Despite Strong Gold Prices
- Will Barrick Gold Stock Recover From The Sell Off?
- With Gold Prices Firming, Is Barrick Gold Stock A Buy?
- Soaring Yields Hit Barrick Gold Stock. Is This An Opportunity To Buy?
- Should You Buy Barrick Gold Stock As Copper Production Soars?
Gold slipped on Monday by 0. 37% to $1,639.1; silver also declined by 1.02% to $30.12. During the month gold decreased by 1.51% and silver by 2.88%.
Australian Trade Balance Deficit Rose Again in March 2012
According to the recent report regarding March 2012, the seasonally adjusted balance of goods and services expanded to a $1,587 million deficit in March 2012.
The export of non-monetary gold rose again by $75 million (6%); as gold exports continue to expand, this might suggest a rise in demand for non-monetary gold despite the recent decline in gold prices (see here last report);
On Today’s Agenda
ECB President Draghi Speaks: Following the ECB rate decision to keep in unchanged at 1% the President of the European Central Bank, Mario Draghi will speak; his speech may include the recent events in Europe and may talk about the ECB’s monetary plan if he will refer to implementing LTRO 3 this may affect the Euro/USD, which is strongly linked with bullion;
Daily Outlook
Bullion resumed yesterday their downward tend and until there will be a surprise announcement from the Fed of another QE program or a substantially negative report from the U.S, I suspect gold and silver prices will continue their slow paced downward trend. The speech of ECB President might affect the Euro especially if he will refer to the ECB plans to expand their monetary policy. Finally, the Australian budget might affect the AUD, which is also strongly correlated with bullion.
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