Gold and Silver Outlook for January 23

by Lior Cohen
Barrick Gold
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Submitted by Trading NRG as part of our contributors program.

The prices of precious metals inched up on Tuesday along with other commodities such as oil and risk related currencies such as Canadian dollar and Aussie dollar. According to Standard Bank the demand for gold has risen in recent weeks to its highest level since November 2012. India raised import duties on gold imports from 4% to 6%. How will this news affect the direction of gold and silver? On today’s agenda: China flash Manufacturing PMI, Bank of Canada’s Overnight Rate, Bank of Canada’s Monetary Policy and Press Conference, Minutes of MPC Meeting.

On Tuesday, the price of gold rose by 0.37% to $1,693.2; Silver price also rose by 0.77% to $32.17. During the month, gold increased by 1.1%; silver, by 6.6%.

The gold and silver futures volumes of trade have risen on Tuesday to 200 thousand and 50 thousand, respectively. These numbers are higher than the volume traded on Friday. If the volume will remain high today, this could suggest the possibility of sudden sharp change in the prices of gold and silver due to low volume will fall.

On Today’s Agenda

Minutes of MPC Meeting: in the previous MPC meeting, the Bank kept the rate flat at 0.5% and the asset purchase program at £375 billion; the MPC still has concerns regarding GB’s inflation rate. The minutes of the latest meeting might offer some insight behind this decision;

Bank of Canada’s Overnight Rate: The Bank of Canada will publish its decision on the short term overnight interest rate, which is currently at 1%. The BOC may continue its policy and keep the interest rate at 1%; on the other hand, the recent slowdown in Canada’s economy might prompt BOC to cut the rate;

Bank of Canada’s Monetary Policy: The Bank of Canada will publish its monetary policy report and also hold up a press conference; if there will be big headlines in this press conference it could affect the Canadian dollar;

China flash Manufacturing PMI: this index will cover 800 companies in 20 industries in China; based on the HSBC Manufacturing PMI report regarding December 2012 the Manufacturing PMI inched up to 50.9; this index indicates the developments in China’s manufacturing sectors growth rate; if the index will further increase, this may positively affect precious metals.

For further reading:

Gold and Silver Outlook for January 21-25

Gold and Silver Outlook for January

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