The prices of gold and silver bounced back on Wednesday after they had declined a day earlier. Their recent rally coincided with the recovery of other commodities prices such as oil. U.S durable goods report came out yesterday: the report was disappointing as durable goods orders fell by 5.7%; core durable good declined by 1.4%. This report didn’t seem to curb the rally of commodities and didn’t drag down equity markets. Moreover, this news may have helped pull up precious metals rates. Perhaps investors wait for tomorrow’s U.S GDP report that could stir up the market again if there will be a surprise. In the meantime, will gold and silver continue to trade up? On today’s agenda: Flash GB GDP Q1 2013 and U.S. Jobless Claims.
On Wednesday, the price of gold bounced back and rose by 1.05% to $1,423; Silver also increased by 0.07% to $22.83. During the month, gold declined by 10.74%; silver, by 19.30% – currently the worst performing month for both metals in years.
The gold and silver futures volumes of trade have declined in the past several days. They reached by Wednesday 153 thousand and 107 thousand for gold and silver, respectively. These numbers are lower than the volume traded a couple of weeks back. If the volume will pick up today, this could raise the odds of high volatility in the prices of gold and silver. The chart below presents the volume of trading gold and silver futures in the CME during April.
St. Deviation of Gold and Silver
Despite the slowdown in the high volatility of precious metals compared to previous week, the volatility of precious metals are still higher than in previous months: The standard deviations of gold and silver (daily percent changes) reached in April 2.64% and 3.09%, respectively.
On Today’s Agenda
Flash GB GDP Q1 2013: This report will present the first estimate of the quarterly growth rate of the British economy for the first quarter of 2013; during the fourth quarter the GB economy contracted by 0.3% (Q-2-Q);
U.S. Jobless Claims Weekly Report: in the previous report the jobless claims rose by 4k to reach 348k; this upcoming weekly report may affect the direction of U.S dollar and consequently precious metals, forex and stocks markets;
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