Gold and silver continue to zigzag and perhaps the market is just waiting for next week's FOMC meeting to see if there won't be any big surprises or announcements that could affect the bullion markets. In the mean time, the market will probably continue to shift from gains to losses. The stock markets sharply rose yesterday perhaps due to the easing concerns over the EU debt crisis, the announcement that IMF raised the global growth forecast from 3.3 to 3.5 in 2012 – this was the first raise since 2011. Alternatively the housing starts declined but that didn't seem to have much of an adverse effect on stock markets, and only little positive effect (if at all) on bullion. Today, the minutes of the recent MPC meeting will be released.
Gold edged up on Tuesday by 0.06% to $1,650; silver also increased by 0.99% to $31.69. Despite the different daily percent changes of bullion in recent days, the linear correlation of their daily percent changes is still strong and robust as presented in the chart below.
Gold Related News April 18th
Gold sales from Australia declined during March: According to a recent report, Perth Mint, which processes all of Australia's bullion, decreased by 9.6% during March. This news might have been due to the Jewelers' strike in India during last month or a decline in demand for gold for investments. Either way, if this trend will continue, this may adversely affect gold's performance in the near future.
Gold and silver continued to zigzag in recent days; even though both metals didn't perform well during most of the month (so far) their fall wasn't sharp and they could change direction if there will be another speculative movement in anticipation for next week's FOMC meeting. In the mean time, I suspect bullion will continue to dwindle and move in a similar direction as the major currencies move with respect to the USD (Euro, AUD).
This gold and silver prices outlook was first presents in Trading NRG
For further reading:
By: Lior Cohen, M.A. in Economics, Commodities Analyst and Blogger at Trading NRG
Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to email@example.com