Gold and Silver Outlook for March 18-22
Submitted by Trading NRG as part of our contributors program.
Gold and silver didn’t do much during last week. Their price volatility also remained low. Several reports came out during last week: retail sales rose by 1.1% in February; jobless claims declined again by 10k to reach 332k; the PPI and CPI each rose by 0.7% during last month; the UoM consumer sentiment declined to 71.8 in March. This mixed signal about the U.S economy may have contributed to the mixed trend in precious metals prices during last week. The recent developments regarding the Cyprus bailout plan is pulling down the Euro. This news might raise the demand for safe haven investments and thus pull up gold and silver prices. Will gold and silver rally next week?
In the video report herein there is an outlook of gold and silver that include the main publications and events that may affect precious metals during March 18th and March 22nd.
- 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?
In conclusion, the main event of the week will refer to the upcoming FOMC meeting. If the Fed will change its outlook of the U.S economy or hint of any future plans to change its current monetary policy, this could affect not only the USD but also precious metals prices. Last time, back in January, the FOMC left its policy unchanged, which resulted in a sharp rise in gold and silver prices. The next day, however, bullion rates tumbled down. I guess that the Fed will keep its policy unchanged, especially since Bernanke continues to be dovish; this, in turn, could lead to a temporary moderate rise gold and silver prices. Up to now, the Fed’s QE3 program augmented the U.S money base, but didn’t seem to have a positive effect on precious metals prices. The ongoing fall in the SPDR gold trust ETF holdings is another indication for the decline in demand for gold as a safe haven investment. If the gold and silver trading volumes will pick up low week, this could raise their price volatility during the upcoming week. In India, if the Rupee will continue to increase against the USD, as it did during the previous week; it may positively affect the demand for gold in India. Finally, if the Euro, Aussie dollar, Canadian dollar and other currencies will continue to appreciate against the USD, they could also positively affect gold and silver. Based on the above, my guess is that gold and silver will rise next week.
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