Gold & Silver – Daily Outlook June 5
Gold and silver continue to zigzag and after they had both spiked on Friday, on Monday they have slightly declined. The G-7 will convene today and talk about the EU debt crisis. On today’s agenda: U.S ISM Non-Manufacturing PMI report, Reserve Bank of Australia – Cash Rate Statement, Australian GDP quarterly update, German Factory orders and Bank of Canada’s Overnight Rate decision.
- 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 declined on Monday by 0.51% to $1,613; silver also fell by 1.77% to $28.01. During the month gold traded up by 3.18% and silver by 0.9%.
On Today’s Agenda
U.S. ISM Non-Manufacturing PMI: During April 2012 this index declined to 53.5% – this still means the non-manufacturing is expanding but at a slower pace than before; this index may affect precious metals ;
German Factory orders: this news could indicate the progress of the German Economy and consequently may affect the strength of the Euro; last time, the orders sharply rose by 2.2%;
Reserve Bank of Australia – Cash Rate Statement: If RBA will decide to change the rate this news may affect the AUD which is strongly correlated with bullion;
Currencies / Bullion Market – June Update
The Euro/USD increased again for the second consecutive business by 0.52% to 1.25. Furthermore, “risk currencies” such as the Aussie dollar also slightly appreciated during Monday. If the USD will continue to decline against these currencies, it might positively affect bullion.
Bullion prices started off the week with little movement after both precious metals spiked on Friday. I speculate bullion is likely to shift from gains to losses during the day and might eventually slightly rise. The upcoming G-7 meeting about the EU debt crisis might produce some headlines that will eventually fuel the speculation about the future of Greece in the EU and the recent liquidity problems that Spain is facing. The upcoming U.S ISM non-manufacturing PMI report might also affect the markets if it will differ from its previous survey. A sharp fall in this index might fuel the speculation around the next move of the Fed, which will help bullion to trade up.
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