The prices of gold and silver slightly declined yesterday. Their modest drop didn’t coincide with the moderate appreciation of “risk currencies” such as Canadian dollar and Aussie dollar against the USD. Yesterday, the U.S retail sales report came out. The report showed a moderate gain in the retail sales inched up by 0.1%. Bank of Japan published its monetary policy statement: the Bank left its policy unchanged. On today’s agenda: EU GDP for Q4 2012, U.S. Jobless Claims, and ECB Monthly Bulletin.
On Wednesday, the price of gold declined by 0.27% to $1,644.5; Silver also decreased by 0.48% to $30.87. During the month, gold decreased by 0.97%; silver, by 1.49%.
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The modest drop in precious metals rates didn’t coincide with the developments in the forex market: the Canadian dollar, Japanese yen and Aussie dollar appreciated against the USD by 0.05%, 0.1% and 0.64%, respectively. The linear correlation between and several leading currencies pairs such as USD/CAD and AUD/USD are still mid-strong at -0.25 and 0.41, respectively. They suggest that if these currencies will change course and fall against the USD, they may pressure down bullion rates.
The ratio between the two precious metals rose on Wednesday to 53.27. During the month, the ratio edged up by 0.53% as gold slightly out-performed silver.
On Today’s Agenda
EU GDP for Q4 2012: According to the latest update, the French GDP contracted by 0.3% in the fourth quarter of 2012. Furthermore, the German economy contracted by 0.6% in Q4 2012. The expectations were on a 0.5% drop. These figures are likely to pull down the Euro currency. Thus, this could also lead to a decline in the prices of commodities including gold and silver.
ECB Monthly Bulletin: This monthly update for January examines the economic developments of the Euro Area including price stability, interest rate decisions and governments’ debt; this report might provide some insight behind the updated expectations of the EU growth;
U.S. Jobless Claims: in the previous report the jobless claims fell by 5k to reach 366k; this upcoming weekly report may affect the U.S dollar and consequently precious metals.
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