The prices of gold and silver started the week on a positive note. The recent of Bernanke may have contributed to the recent rally of precious metals on Monday. Will gold and silver continue to rise today? China is showing record high demand for gold. This could be another factor to keep the prices of gold high. On today’s agenda: Great Britain CPI, BOE Inflation Estimate, U.S. Retail Sales Report and U.S. Producer Price Index.
On Monday, the price of gold rose by 0.53% to $1,669.4; Silver price also increased by 2.31% to $30.38. During January, gold inched down by 0.32%; silver rose by 3.01%.
The gold and silver futures volumes of trade have slightly declined on Monday to 161 thousand and 46 thousand, respectively. These numbers are very similar to the volume traded on last Monday. If the volume will rise today, this could suggest the odds of sudden sharp shifts in the prices of gold and silver due to low volume will decline. The chart below presents the volume of trading gold and silver futures in the CME in recent weeks.
On Today’s Agenda
Great Britain CPI: in the recent report regarding November the annual CPI remained at 2.7%; if the inflation will rise, it could lower the odds of the MPC expanding its asset purchase program; this news might affect the British pound;
BOE Inflation Estimate: this report will present the yearly rate of GB’s inflation according to Bank of England; it will be published as a letter only if the inflation is exceed 3% or below 1%;
U.S. Retail Sales Report: this report will presents the monthly developments in the retail sales and food services for December; in the recent report regarding November, the retail sales rose by 0.3% from the previous month;
U.S. PPI: This report will show the inflation rate from the producers’ stand point. In the latest report regarding November this index for finished goods declined by 0.8% compared with October’s rate but rose by 1.5% in the last 12 months; this news might affect precious metals;
For further reading: