The prices of gold and silver started off the month of April the same way they have ended March: with an unclear trend. Specifically, the price of gold inched up while silver continued to decline. In the forex market many currencies including Euro and Aussie dollar slightly appreciated against the USD. Yesterday the U.S and China’s manufacturing PMI reports came out. Both reports showed the manufacturing in both countries continued to grow: U.S PMI declined to 51.3%; China’s PMI bounced back to 50.9%. This meansChina’s manufacturing sectors are rising at a slightly faster pace, while U.Ss sectors are growing at slightly slower pace than in February. This news might have helped rally gold price. Will gold and silver rally tomorrow?On today’s agenda: Reserve Bank of Australia – Cash Rate Statement, Spain’s unemployment Change, GB Manufacturing PMI, Euro Area unemployment rate, U.S Factory Orders and Australian Trade Balance.
On Monday, the price of gold rose by 0.35% to $1,600.4; Silver decreased again by 1.23% to $27.94. During last month, gold increased by 1.08%; silver slipped by 0.36%.
- What Is The State Of The Vapor Market In The U.S.?
- Why Are We Bullish On ConocoPhillips?
- What Will Petrobras’ Revenue & EBITDA Composition Look Like 5 Years From Now?
- What Percentage of Textron’s Stock Price Can Be Attributed To Growth?
- What’s Behind The Recovery In Gold Prices This Year?
- What Percentage of Nike’s Stock Price Can Be Attributed To Growth?
Due the different directions gold and silver took in recent weeks, the linear correlation of the two precious metal daily percent changes declined to its lowest level in over two years, as indicated in the chart herein. During March the linear correlation of their daily percent changes 0.603, which means the two metals’ relation has weaken in recent weeks.
On Today’s Agenda
U.S Factory Orders: This report will show the changes in U.S. factory orders of manufactured durable goods during March; in the previous report factory orders fell by 2%; this report will offer some insight regarding the growth of the U.S and could affect the USD;
Reserve Bank of Australia –Rate Decision: in the past two months, the overnight money market rate ofAustralia’s Reserve Bank remained unchanged 3%, which is still the lowest level since the September 2009. RBA reduced the rate four times last year by a total of 1.25pp. If the RBA will decide to cut its rate again, this news may affect the Aussie dollar;
For further reading: