Gold & Silver – Daily Outlook March 2nd 2012

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This was submitted by Lior Cohen, M.A. at Trading NRG using the Trefis Contributor Tool

Gold and silver bounced back from Wednesday’s tumble. The US unemployment claims edged up to 353k, which may have strengthened the US dollar during yesterday against many currencies. Currently gold and silver are slightly falling. Today there Canada’s GDP monthly update will be published.

The complete daily outlook on gold and silver prices

Gold slightly rose on Thursday by 0.64% to $1,722.2; silver much like gold traded up by 2.94% to $35.66. During the week, gold fell by 3.05% while silver increased by 0.68%.

The chart below shows the developments of gold and silver during the last couple of weeks (prices are normalized to February 16th).

The ratio declined during Thursday, and reached 48.29. During the week the ratio declined by 3.71% as silver has outperformed gold. In the chart below are the changes in this ratio during February and March.

St. Deviation of Gold and Silver

Due to the last few days’ turn of events gold and silver volatility increased for February: the standard deviations of silver and gold reached its highest level this year so far.

On Today’s Agenda

Canada’s GDP by Industry: In the recent report, the GDP edged down by 0.1%. This report might affect the trading on the Canadian dollar currency and consequently gold and silver prices (for the full previous report);

Forex / Gold & Silver– March

The Euro/USD slightly declined on Thursday by 0.11% to 1.3311. During the week Euro/USD decreased by 1.03%; on the other hand, the AUD appreciated against the U.S. dollar by 0.72%; if the Euro and AUD will trade down during the day; it could indicate that gold and silver will fall.

Daily Outlook

Gold and silver continue to zigzag and after their tumble on February 29th, they have managed to bounce back yesterday. This no clear direction might continue today. The upcoming Canada’s GDP report might affect the direction of Canada’s dollar if there will be sharp shift, which in turn may also affect the nudge gold and silver.

For further reading:

Gold and Silver Prices Outlook for March 2012