The prices of gold and silver didn’t do much yesterday as the price of gold slightly rose while silver moderately declined. Moreover, in the forex and equity markets the volatility was also low. In the recent precious metals weekly outlook I have pointed out that one of the main events of the week will be Bernanke’s speech that will take place by the end of the week. Until then, the volatility of precious metals might remain low. On today’s agenda: Reserve Bank ofAustralia rate decision, Australian Trade Balance, German Factory Orders, Swiss National Bank Foreign Currency Reserve.
On Monday, the price of gold slightly rose by 0.26% to $1,468; Silver slipped by 0.24% to $23.94. During the month, gold declined by 0.29%; silver, by 0.86%.
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The gold and silver futures volumes of trade have declined on Monday to 87 thousand and 24 thousand, respectively. These numbers are lower than the volume traded in the past several weeks. If the volume will remain low today, this could suggest the volatility in the prices of gold and silver won’t rise.
On Today’s Agenda
German Factory Orders: This report will refer to the changes in the factory orders ofGermany for March; in the last report the German factory orders increased by 2.3% (M-o-M);
Australian Trade Balance: The report will pertain to March 2013. In the previous monthly report, regarding February, the seasonally adjusted balance of goods and services contracted its deficit to $178 million. The export of non-monetary gold fell by $143 million; if the gold exports will continue to dwindle in March, it might suggest a drop in demand for non-monetary gold (see here recent report);
Reserve Bank of Australia – Cash Rate Statement: in the past several months, the overnight money market rate ofAustralia’s Reserve Bank remained flat at 3%, which is still the lowest level since the September 2009. RBA cut the rate four times in 2012 by a total of 1.25pp. If the RBA will decide to reduce its rate again, this news may affect the Australian dollar;
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