Gold and silver prices resumed their downward trend and fell during yesterday. The fall of bullion prices coincided with the drop of leading “risk related currencies” such as the Euro and Aussie dollar against the USD. In the equities markets the S&P500 index and other leading indexes rallied. Will gold and silver continue to trade down today? On today’s agenda: Great Britain Claimant Count Change, Bank of England Inflation Report, EU GDP for the quarter, Governor King speaks, Canada Manufacturing Sales, U.S. Producer Price Index, and U.S. TIC Long Term Purchases.
On Tuesday, gold declined by 0.68% to $1,424.5; Silver also fell by 1.33% to $23.37. During the May, gold declined by 3.24%; silver, by 3.23%.
The ratio between the two precious metals slightly rose on Tuesday to 60.97. During the month, the ratio edged down by 0.01% as gold performed almost the same as silver.
St. Deviation of Gold and Silver
The slow movement of both bullion prices is represented in the drop in precious metals prices’ volatility during the month: the standard deviations of gold and silver (daily percent changes) reached 1.27% and 1.46%, respectively.
On Today’s Agenda
EU First Quarter GDP 2013: during the fourth quarter of 2012, EU’s economy contracted by 0.6%; if the EU economy will continue to shrink this could adversely affect the Euro;
Canada Manufacturing Sales: This report will refer to the manufacturing sales in Canada as of March. It may affect the USD/CAD currencies pair, which is strongly correlated with bullion prices. In the latest report regarding February 2013, manufacturing sales sharply rose by 2.6%;
U.S. Producer Price Index: In the previous report regarding March, this index for finished goods declined by 0.6% compared with February’s rate and by 1.1% in the past 12 months; this news might affect the direction of commodities rates;
U.S. TIC Long Term Purchases: The Treasury International Capital monthly report will show the shifts in the purchases and sales of US long term treasuries for March 2013. In the recent report regarding February 2013, the net foreign sales of U.S Treasuries longer-term notes fell by $17.8 billion;
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