Gold and Silver Outlook for January 31
Submitted by Trading NRG as part of our contributors program.
The prices of gold and silver spiked yesterday along with other commodities and risk related currencies such the Euro and British Pound against USD. The unfavorable report regarding the contraction in the U.S economy – U.S GDP for Q4 declined by 0.1% – may have influenced bullion traders to raise their demand for gold as a safe haven investment. The FOMC, as expected, left its current monetary policy unchanged. On today’s agenda: German Retail Sales, German unemployment Change, U.S Personal Spending, Canada’s GDP by Industry, U.S. Jobless Claims, and China Manufacturing PMI.
On Wednesday, the price of gold sharply increased by 1.15% to $1,679.9; Silver price also rose by 3.19% to $32.15. During the month, gold inched up by 0.3%; silver rose by 6.56%.
On Today’s Agenda
U.S. Jobless Claims Weekly Report: in the recent report the jobless claims declined by 5k to reach 330k; this upcoming weekly report may affect the U.S dollar and consequently commodities;
China Manufacturing PMI: According the latest report regarding December 2012 the Manufacturing PMI remained at 50.6; this means that China’s manufacturing sectors is slowly expanding; last week’s flash manufacturing PMI increased again. If this upcoming report will also show growth, it could signal an improvement in China’s economy;
German Retail Sales: In December, retail sales rose by 1.2% – higher than many had anticipated; if this report will rise again then it might strengthen the Euro;
German unemployment Change: the rate of unemployment of the Germany edged up again to 6.7%. This mean, the employment situation in Germany isn’t progressing. If in the upcoming report this trend will continue, it may adversely affect the Euro;
Canada’s GDP by Industry: the upcoming report will show the developments in major industrial sectors during November 2012. In the recent report regarding October 2012, the real gross domestic product inched up again by 0.1%. This report may affect the direction of the Canadian dollar, which is strongly linked with major commodities;
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