Gold and Silver Outlook for March 5

+9.36%
Upside
15.63
Market
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Submitted by Trading NRG as part of our contributors program.

The rates of silver and gold remained virtually unchanged on the first of day of the week. In Australia, RBA left its policy unchanged and didn’t cut its cash rate. Governor Stevens was upbeat about the rise in capital expenditures. This news and positive sentiment may help rally the Aussie dollar, which tends to be correlated with bullion rates. Nonetheless, RBA might eventually decide to cut its cash rate in the near future. The next rate decision will be of Bank of Canada that will be announced tomorrow. In Asia, CME Asia is expanding its business mainly on the rise in commodities including gold and currencies. As the Asian financial markets continue to grow the effect of Asia on the direction of commodities will continue to rise. Will gold and silver bounce back today? On today’s agenda: BOC rate decision, ECONFIN Meeting, U.S. ISM Non-Manufacturing PMI, Australian GDP Fourth Quarter 2012, and GB Services PMI.

On Monday, the price of gold inched up by 0.03% to $1,572.4; Silver also edged up by 0.08% to $28.47. During the month, gold slipped by 0.34%; silver rose by 0.27%.

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The ratio between the two precious metals fell on Monday to 55.22. During March, the ratio edged down by 0.61% as gold slightly under-performed silver.

On Today’s Agenda

U.S. ISM Non-Manufacturing PMI: For the previous update, this index declined to 55.2% – this means the non-manufacturing is growing and at a slower pace than in the previous month; this index may affect the USD;

Australian GDP Fourth Quarter 2012: In Q3 2012, the GDP expanded by 0.5% (seasonally adjusted) – a slightly lower growth rate than in the first couple of quarters. The slowdown in China’s economy might have also adversely affected the growth of Australia’s GDP. Australia is among the leading countries in exporting commodities; if the GDP growth rate will fall again, it could affect the direction of Australia dollar;

For further reading:

Gold and Silver Outlook for March

Gold and Silver Outlook for March 4-8