Gold And Silver Outlook For February 5
Submitted by Trading NRG as part of our contributors program.
The prices of gold and silver moved in an unclear trend as gold slightly rose while silver declined. This unclear trend was also recorded in the forex markets as the Euro depreciated against the USD while other risk related currencies such as the Aussie dollar appreciated against the USD. Yesterday, Reserve Bank of Australia left its interest rate unchanged at 3%. This news may have contributed to the modest rise of the Aussie dollar yesterday. U.S factory orders rose in December but by a lower than anticipated pace. Will gold and silver start to rise? On today’s agenda: Australian Retail Sales, U.S. ISM Non-Manufacturing PMI, and Australian Retail Sales.
On Monday, the price of gold rose by 0.35% to $1,675.7; Silver price decreased by 0.76% to $31.72. During the month, gold increased by 0.91%; silver, by 1.22%.
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The gold and silver futures volumes of trade have declined on Monday to 121 thousand and 39 thousand, respectively. These numbers are lower than the volume traded during last week. The chart below shows the volume of trading gold and silver futures in the CME in recent weeks. If the volume will remain low the prices of gold and silver are likely to keep moving in an unclear trend.
Currencies / Bullion Market – February Update
The Euro/ USD fell on Monday by 0.92% to 1.3515. The Canadian dollar also depreciated against the USD. Conversely, some currencies such as Aussie dollar appreciated yesterday against the USD by 0.29%. The mixed trend in the forex markets in which the Euro and Canadian dollar fell while the AUD rose may have influenced precious metals traders. The correlations among gold, Canadian dollar and Aussie dollar were mid-string in recent weeks: during January/February, the linear correlation between gold and USD/CAD reached -0.33 (daily percent changes); the linear correlation between the gold and AUD /USD reached 0.47 (daily percent changes).
On Today’s Agenda
Euro Area Retail Sales: This monthly report will show the shifts in EU retail sales for December. In November 2012, retail sales inched up by 0.1%; if this report will continue to show a rise in sales index, it might strengthen the Euro;
U.S. ISM Non-Manufacturing PMI: During December 2012 this index rose to 56.1% – this means the non-manufacturing is growing and at a faster pace than in the previous month; this index may affect forex and commodities trading;
Australian Retail Sales: In the previous update, the seasonally adjusted retail sales inched down during November; this news may affect the Aussie dollar.
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