Gold and Silver Outlook for March 13
Submitted by Trading NRG as part of our contributors program.
The rates of silver and gold sharply increased on Tuesday. Their recovery coincided with the drop in long term treasuries yields: the 10 year U.S treasuries securities fell to 2.03%. Will gold and silver rally further? On today’s agenda: EU Industrial Production, U.S. Retail Sales, Italian 10 Year Bond Auction, U.S 10 Year Bond Auction and Australia Employment Report.
On Tuesday, the price of gold rose by 0.87% to $1,591; Silver also increased by 1.1% to $29.15. During March, gold rose by 0.89%; silver increased by 2.64%.
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Currencies / Bullion Market – March Update
The Euro/ USD inched down on Tuesday by 0.07% to 1.3035. Conversely, several currencies such as the Aussie dollar appreciated again yesterday against the USD by 0.36%. This shows the sharp rise in precious metals had little to do with the movement in the forex markets. Further, the correlations among gold, Canadian dollar and Aussie dollar remained weak in recent weeks: during February/March, the linear correlation between gold and USD/Yen reached -0.3 (daily percent changes); the linear correlation between the gold and AUD/USD reached 0.23 (daily percent changes). Despite the weak correlations, if leading currencies will depreciate against the USD, they might drag down gold and silver.
On Today’s Agenda
U.S. Retail Sales: this report will present the monthly shifts in the retail sales and food services for February; in the recent report regarding January, the retail sales edged up by 0.1%;
Italian 10 Year Bond Auction: the Italian government will issue its monthly with bond auction; in the recent bond auction, which was held at the last week of February, the average rate reached 4.83% – the highest rate in the past several months;
U.S 10 Year Bond Auction: the U.S government will issue its monthly with bond auction; in the previous auction, which was held at the middle of February, the average rate reached 2.05% – the highest rate in the recent months;
Australia Employment Report: in the last report regarding January 2013 the rate of unemployment remained flat at 5.4%; the number of employed (seasonally adjusted) rose by 10,400 people. This report could affect the Aussie dollar (see here the recent report);
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