Last week gold slightly increased despite the expectations that the FOMC meeting will adversely affect bullion prices. Silver price slightly declined last week. The U.S GDP for Q1 2012 didn’t reach expectations and may have been among the factors to pull up precious metals prices on Friday. This upcoming week there are many news items on the agenda that may affect gold and silver. The main events of the week will revolve the U.S manufacturing production, U.S non-farm payroll report and ECB rate decision and monetary policy.
- Barrick Gold’s Q4 2016 Earnings Review: Higher Gold Prices And Success Of Cost Reduction Initiatives Drive Results
- Barrick Gold’s Q4 2016 Earnings Preview: Higher Gold Prices And Cost Reduction Initiatives To Boost Earnings
- Why Barrick’s Gold Production Declined In 2016
- The Year 2016 In Review: Barrick Gold Well Positioned To Deal With Lower Gold Prices As A Result Of Cost And Debt Reduction Efforts
- Why Barrick Gold Is Well Placed To Weather A Downturn In Gold Prices
- Why We’re Lowering Our Price Estimate For Barrick Gold To $16
Gold moderately rose during last week by 1.34%, while silver slightly declined on a weekly scale by 0.97%.
Furthermore, during last week the GLD gold etf also rose by 1.15% and reached on April 27th 161.38.
During last week the U.S jobless claims slipped (week over week); this news however didn’t seem to affect much the forex or commodities markets. The housing market in the U.S received positive news as pending home sales increased in March.
The video link on gold and silver prices provides a broad outlook for the major news and events that might affect the direction of metals during the week of week of April 30th to May 4th; the video includes reviewing the main reports, events, decisions and news items to be published during the upcoming week. Some of these reports and events include:
Thursday – U.S. Jobless Claims: in the previous update the jobless claims slipped to 388k; this upcoming weekly report may affect the direction of the U.S dollar and consequently commodities prices;
Thursday – ECB Rate Decision: In previous rate decision the ECB left the rate flat at 1%; Due to the recent developments in Spain and Italy and ongoing perils the EU has forthcoming, ECB might consider introducing additional monetary easing steps (LTRO); if the ECB will make a move, it may affect the Euro;
Friday – U.S. Non-Farm Payroll Report: in the recent March report, the labor market as the number of non-farm payroll increased by only 120k; if the upcoming report will not reach the 180-200 thousand mark, this may have a sportive effect on bullion prices (see here my last review on the U.S employment report).
In conclusion, I speculate that if the U.S reports including the non-farm payroll report and Manufacturing PMI will beat or meet expectations then bullion might decrease. Finally, if the EU economy will continue to pose concerns that will adversely affect the Euro and bullion.
For further reading: