Gold and Silver Outlook for February 8
Submitted by Trading NRG as part of our contributors program.
The prices of silver and gold changed direction and fell on Thursday. The recent comments made by ECB President Draghi regarding the strength of the Euro raised the speculations that the ECB might cut its cash rate in the near future. U.S jobless claims decreased by 5k and reached 366k. This news may have also contributed to the strengthening of the USD. On today’s agenda: China New Loans, Canada’s Employment Report, American Trade Balance, China’s CPI and Canadian Trade Balance.
On Thursday, the price of gold fell by 0.45% to $1,670.6; Silver price also declined by $31.4. During the month, gold increased by 0.6%; silver, by 0.22%.
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The ratio between the two precious metals rallied on Thursday to 53.2. During the month, the ratio rose by 0.38% as gold slightly out-performed silver.
On Today’s Agenda
China’s CPI: during December the Chinese inflation rate rose to an annual rate of 2.5%; this rate is well below China’s inflation target of 4% in annual terms. If the inflation will continue remain low, it could indicate that China’s economic progress isn’t expanding; China is among the leading countries in importing gold and oil;
Canada’s Employment Report: In the recent employment update for December, unemployment edged down to 7.1%; the employment rose by 40k during the month. The upcoming report might affect the Canadian dollar;
Canadian Trade Balance: In the previous report regarding November, exports fell by 0.9% and imports rose by 2.7%; as a result, the trade deficit expanded from a $552 million deficit in October to $2 billion deficit in November;
American Trade Balance: This report for December will show the recent developments in imports and exports of goods and services to and from the U.S, including commodities such as oil and natural gas; according to the previous American trade balance report regarding November the goods and services deficit increased during the month to $48.7 billion;
China New Loans: This report will pertain to the recent developments in China’s new loans given during the previous month. According to the recent report, the total loans changed direction and fell;
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