Gold and Silver Outlook for March 19
Submitted by Trading NRG as part of our contributors program.
The prices of gold and silver rose during yesterday. Their rally may have stemmed from the recent developments related to Cyprus bailout plan that may have also adversely affected the Euro and other risk related currencies. This development may have raised the demand for safe haven investment and thus helped rally precious metals prices. In the meantime, the GLD ETF isn’t the only one that is shrinking, Bloomberg reports that Indian gold ETFs are also contracting. The main event of the week will be the FOMC meeting that will start today and conclude tomorrow with a press conference. Until then the volatility of precious metals are likely to remain low. Will gold and silver continue to rise? On today’s agenda: Great Britain PPI Input, German ZEW economic sentiment, and Bank of England Inflation letter.
On Monday, the price of gold edged up by 0.12% to $1,592.6; Silver also slightly rose by 0.15% to $28.83. During March, gold rose by 0.94%; silver, by 1.52%.
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The gold and silver futures volumes of trade have risen on Monday to 205 thousand and 38 thousand, respectively. These numbers are lower than the volume traded a couple of weeks back. If the volume will change course and fall today, this could suggest the odds of sudden sharp change in the prices of gold and silver due to low volume will fall.
On Today’s Agenda
Great Britain PPI Input: this report will refer to the GB’s PPI input for February 2013; as of the latest monthly update, the PPI input rose by 1.3%;
German ZEW economic sentiment: The upcoming update will refer to the ZEW indicator of economic sentiment for Germany for March. In February the ZEW indicator for Germany increased again to 48.2 points; if Germany’s economic sentiment will rise further, the Euro will plausibly strengthened against other currencies such as the USD;
Bank of England Inflation letter: this report will show the yearly rate of GB’s inflation based on the estimate of Bank of England; the bank will publish the letter only if the inflation is exceed 3% or will be below 1%.
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