Guest Commentary: Gold & Silver Daily Outlook 05.25.2012
Precious metals bounced back from their tumble in recent days. Other commodities including oil also rallied during Thursday's trading. U.S jobless claims nearly didn’t change and core durable goods report presented a mixed trend and little movement. The speculation around the future of Greece keeps eclipsing other events and news items. I have analyzed how a Grexit might affect bullion.
On today's agenda: U.S Consumer Sentiment, and German Consumer Climate Survey.
The chart below shows the normalized rates of metals during month up to date (normalized to 100 as of April 30th).
Core Durable Goods Edged Up in April
This report may indirectly presents the developments in U.S. demand for commodities.
According to recent report for April, which was published yesterday, new orders of manufactured durable goods rose by $0.3 billion to $215.5 billion; on the other hand Non-defense new orders for capital goods decreased $0.1 billion to $70.0 billion. This mixed signal in the report might have had little effect on the financial markets as there weren't sharp changes in new orders.
On Today's Agenda
U.S Consumer Sentiment by UoM: University of Michigan will release its revised consumer sentiment index.
German Consumer Climate: Gfk group will release their German consumer climate index. If this report will be positive it might also have a positive effect on the Euro;
Bullionchanged direction and increased during yesterday along with other commodities prices such as oil price. The recent U.S reports didn't show much progress as both the Jobless claims and durable goods didn't improve by much from their respective previous reports. The speculation revolving around Greece is likely to keep eclipsing other news items in the days to come including during the last day of the week. Finally the upcoming reports from the U.S and Germany might play a small role in affecting prices if they will present sharp shifts or surprises.
This gold and silver prices outlook was first presents in Trading NRG
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By: Lior Cohen, M.A. in Economics, Commodities Analyst and Blogger at Trading NRG
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