Gold and silver slightly declined on Tuesday. On the other hand, other commodities prices such as oil prices and the stock market indexes such as S&P500 rose during yesterday. The shift in market sentiment towards bullish may have contributed to decline in demand for precious metals and other safe haven investments. Yesterday, several U.S reports showed signs of slowdown in growth: new home sales declined by 4.6% in the recent month compared to the previous month; consumer confidence declined during March; Will gold and silver continue to decline? New orders of core durable goods fell by 5.2%. These news items didn’t slow down the rally in the financial markets. On today’s agenda: German Consumer Climate, KOF Economic Barometer, Canada’s core CPI, U.S. Pending Home Sales, and GB Current Account.
On Tuesday, the price of gold declined by 0.55% to $1,595.7; Silver also decreased by 0.49% to $28.65. During March, gold rose by 1.14%; silver, by 0.89%.
The ratio between the two precious metals edged down on Tuesday to 55.7. During the month, the ratio edged up by 0.24% as gold slightly out-performed silver.
The gold and silver futures volumes of trade have reached on Tuesday to 317 thousand and 26 thousand, respectively. For gold, this number is the second highest volume traded during the month. If the volume will rise again today, this could raise the odds of sudden change in the prices of gold and silver due to high volume.
On Today’s Agenda
GB Current Account: This quarterly report will present of any changes in the gap between the impost and exports as of the previous quarter. Based on the recent report, the deficit contracted to 12.8 billion pounds. This report might affect the strength of the British Pound;
Canada‘s core CPI: This report will pertain to the CPI and core consumer price index (controlling the volatile components such as energy, fruit and vegetables) for February. Based on the Canadian CPI report for January 2013, the core CPI edged up by 0.1% during the month;
U.S. Pending Home Sales: This report presents the changes in pending home sales for February; in the recent update, the pending home sales index bounced back and rose by 4.5% (M-over-M). These data are another indicator for the developments inAmerica’s housing market.
For further reading: