Gold and silver didn't react to the recent FOMC statement to keep policy unchanged. Both metals slightly declined yesterday, while many other commodities increased and the USD depreciated against the Euro. It seems that the market had already anticipated no headlines from the recent FOMC meeting; eventually it was only a storm in a teacup.
On today's agenda: U.S Pending home sales, BOJ monetary policy update, U.S weekly update on jobless claims, and the Italian auction bond sales.
Gold slipped on Wednesday by 0.09% to $1,642.3; silver even more than gold decreased by 1.27% to $30.43. The Euro/USD edged up on Wednesday by 0.15% to 1.3217.
The ratio between gold and silver rose to 53.98. During April the ratio increased by 4.88% as gold has outperformed silver during the month.
On Today's Agenda
U.S. Jobless Claims Update: in the previous update the jobless claims edged down to 386,000; this upcoming weekly report may affect the path of the USD and consequently bullion;
U.S. Pending Home Sales: In the previous report the pending home sales index declined by 0.5%. If the pending sales will decline, this may weaken the USD;
Daily Outlook
Gold and silver didn't react to the FOMC meeting statement and the Press conference that followed. This might suggest that bullion will remain flat for the rest of the month. Up to now, bullion didn't do well during the month. The upcoming reports from the U.S including jobless claims and pending home sales may positively affect bullion prices if these reports won't be positive. Finally, if the Italian bond sale will go well it may also positively affect the Euro.
This gold and silver prices outlook was first presents in Trading NRG
For further reading:
Weekly Outlook for 23-27 April 2012
Gold and Silver Weekly Outlook for April 23-27
By: Lior Cohen, M.A. in Economics, Commodities Analyst and Blogger at Trading NRG
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