Gold and Silver Outlook for June 14
Submitted by Trading NRG as part of our contributors program.
Precious metals continue to zigzag and gold and silver declined yesterday after they rallied a day earlier. Conversely, leading currencies such Euro and Aussie dollar rose against the USD yesterday. In the U.S, retail sales slightly increased by 0.6%; jobless claims fell again by 12k to reach 346k. These positive news items may have contributed to the decline of precious metals rates yesterday. Further, the recent rally in equities markets in the U.S may have also contributed to the downfall of bullion. Will gold and silver change direction again and bounce back today? On today’s agenda: Euro Area CPI, Canada Manufacturing Sales, U.S. Producer Price Index, and UoM Consumer Sentiment.
On Thursday, gold changed course again and slipped by 1.02% to $1,377.9; silver also declined by 0.98% to $21.58. During June, gold declined by 1.06%; silver, by 2.90%.
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The ratio between the two precious metals inched down on Thursday to 63.84. During June, the ratio increased by 1.90% as gold slightly out-performed silver.
The similar percent changes of gold and silver in recent days convinced with the strengthening of the linear correlation of these two precious metals daily percent shifts, as indicated in the chart herein. During June the linear correlation of their daily percent changes reached the highest level in the past couple of years so far, which means the two metals’ relation has tighten in recent weeks.
On Today’s Agenda
U.S. Producer Price Index: In the recent report for April, this index for finished goods declined again by 0.7% compared with March’s rate and rose by 0.6% in the past 12 months; this news might affect the USD and commodities prices;
UoM Consumer Sentiment (preliminary):University ofMichigan will publish its preliminary consumer sentiment monthly report; this survey could offer an insight to latest changes in U.S consumers’ sentiment; based on the recent update, the sentiment index sharply increased to 83.7;
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