Lior Cohen, Trading Nrg | Jun. 10, 2013, 8:49 PM ,Business Insider
At the beginning of the week gold and silver rallied only to tumble down on Friday. In Europe, ECB and BOE kept its cash rate unchanged. This news may have contributed to the rally of not only the Euro but also PM prices. In Friday, U.S employment report showed a higher than anticipated figures. This news pulled down gold and silver prices. Will precious metals continue to trade down this week?
Herein is a short overview that outlines the main publications, events and decisions that may affect gold and silver next week between June 10th and June 14th.
The precious metals market has been experiencing an unclear trend in recent weeks as gold and silver change direction almost on a weekly basis. I think this pattern suggest the bullion traders are unsure about the future of precious metals. On the one hand, the developments in the currencies markets including the rise and fall of the Euro, and Japanese yen against the USD may have contributed to the unclear trend in commodities markets. On the other hand, the devaluations of Aussie dollar against the USD may have pulled down precious metals prices. In Asia, the concerns regarding the future demand for precious metals in China and India, two leading PM importers, contribute to the unclear trend of gold and silver. By the end of last week, China’s trade balance report showed a slight drop in growth of exports. This news could pull down on Monday not only the Aussie dollar but also PM prices.
The SPDR gold trust ETF holdings continue to fall: the ETF’s amount of gold held fell by 6.3% during May and June. If gold holdings will continue to drop, they could indicate the demand for gold as an investment continues to dwindle. Finally, the Indian Rupee depreciated again against the USD during the previous week; if this trend will persist; it may adversely affect the demand of gold in India.
Mogb Gold News, Please suscribe and Share about My own gold business online