Gold and Silver Outlook for June 24-28
Submitted by Trading NRG as part of our contributors program.
During the previous week, gold and silver tumbled down. The main event of last weeks in the U.S was the FOMC statement. The FOMC kept policy unchanged but in the press conference that followed the statement, Bernanke stated the Fed may taper QE3 by end of 2013. This was enough to pull down gold and silver and the US dollar up. On Thursday, it was also reported that China’s credit squeeze, in which Chinese banks have lowered their lending volume, may have also pressured down the markets. Moreover China’s flash manufacturing PMI slipped in June. In other news: Jobless claims rose by 18k to reach 354k. Will gold and silver bounce back this week?
Herein is a short overview that outlines the main publications, events and decisions that may affect gold and silver next week between June 24th and June 28th.
- Rising 21% This Year, What Lies Ahead For Exxon Stock Following Q1 Earnings?
- Should You Pick General Electric Stock At $165?
- What’s Next For JetBlue Stock After A Sharp 19% Fall Post Q1 Results?
- Is Kimberly-Clark Stock Fairly Valued At $135 After A Solid Q1?
- How Will AMD’s AI Business Fare In Q1?
- Up 9% Year To Date, Will Chevron’s Gains Continue Following Q1 Results?
FOMC Meeting and Press Conference
Even though the Fed left its policy unchanged; this includes the Fed’s current $85 billion a month asset purchase program. On the one hand, n the press conference that followed Bernanke suggested the Fed may decide to ease down QE3 by the end of 2013 and end the program by mid-2014, providing, of course, the U.S economy will continue to progress at its current pace.
In the U.S, the upcoming reports including: new home sales, GDP, and consumer confidence may provide some perspective regarding the progress of the U.S economy. If these reports will show signs of growth, they could drag down bullion prices.
Gold holdings of the SPDR gold trust ETF continue to fall: the ETF’s amount of gold held slipped by 2.29% during June. Moreover, the gold hoarding fell below 1,000 tons for the first time in years. If gold holdings will further fall, they could indicate the demand for gold as an investment continues to fall. Finally, the Indian Rupee changed direction and depreciated against the USD during last week; if this trend will persist; it may adversely affect the demand of gold inIndia.
For further reading: