Gold remained virtually unchanged as it inched down on a weekly scale. The price of silver declined. Their modest fall partly coincided with the depreciation of the Euro and Aussie dollar against the USD. ECB President Mario Draghi’s remarks regarding the strength of the Euro currency and the expected drop in the inflation during 2013 contributed to the sharp depreciation of the Euro. This news, however, seem to have slightly influenced bullion traders as gold and silver only moderately declined. Will gold and silver continue to trade slowly up next week?
In the video report herein provides an outlook of gold and silver that include the main publications and events that may affect precious metals during February 11th and February 15th. Some of these reports include:
Tuesday – ECONFIN Meetings: EU ministers of finance and EU leading policymakers will convene for the monthly meeting. In this meeting the EU ministers will likely discuss the recent multi-year EU budget decision and future development of the EU economy;
Wednesday –U.S. Retail Sales Report: this report will show the monthly changes in the retail sales and food services for January; in the recent report regarding December, the retail sales increased by 0.5% from the previous month;
Thursday – EU GDP for Q4 2012: according to the previous quarterly update the annual GDP contracted by 0.1% as of the third quarter. This flash estimate will refer to the fourth quarter of 2012. If the EU economy will continue to shrink, this may also weaken the euro currency;
In conclusion, my guess is that precious metals will change course and slowly increase during the week. The low volatility in the bullion market coincided with the low trade volume in the CME of silver and gold. If the low volume of trade will continue, this could keep gold and silver at a low volatility mode. If the ECB President or the EU policymakers in the EU Summit will come up with big headlines regarding the progress of the EU economy this could influence Euro traders and indirectly affect precious metals. The upcoming reports regarding the U.S economy including: consumer confidence, retail sales and jobless claims, could affect the USD and bullion prices: if these reports will show contraction in the U.S economy, they may positively affect gold and silver. The U.S money base has increased in recent weeks, which could lead to a rise in the price of gold via its growing demand as a safe haven investment.
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