We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • $USDCAD dives to lowest level since March 15 on USD weakness https://t.co/8abAuksdMo
  • #Equities: US futures on the front-foot with market participants returning from their elongated break, which in turn sees the S&P 500 pierce the psychological 3000. Get your #equities market update from @JMcQueenFX here: https://t.co/7O447VkToZ https://t.co/TyXEaPVnbb
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • it's time for the webinar, starting right now https://www.dailyfx.com/webinars/1338844901231735299 https://t.co/gLQFjotDmG
  • Senate Majority Leader McConnell says drop in revenue for States a concern, but national debt is also concerning- BBG
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.52%, while traders in US 500 are at opposite extremes with 75.73%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tkFbZhU9DE
  • Heads Up:🇺🇸 Fed Kashkari Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-26
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/webinars/1338844901231735299
  • Heads Up:🇷🇺 Unemployment Rate due at 17:00 GMT (15min) Expected: 5.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2020-05-26
Guest Commentary: Gold & Silver Daily Outlook 07.12.2012

Guest Commentary: Gold & Silver Daily Outlook 07.12.2012

2012-07-12 11:36:00
Lior Cohn: Commodities Analyst,
Share:

Gold declined again for the second consecutive day. Silver, on the other hand edged up. The recent minutes of the June FOMC meeting didn't provide any hints of possible implementations of QE program in the near future. Several FOMC members also voiced their concerns over the effects the stimulus plans will have on the long term inflation pressures. American Trade Balance was published yesterday and showed a mixed signal: there was a decline of $1.9 billion in the deficit during May compared to April; the deficit reached in May $48.7 billion; the decline was due to a rise in exports and a fall in imports. There are many items on today's agenda including: China Second Quarter GDP 2012, ECB Monthly Bulletin, U.S. Jobless Claims, Great Britain 10 Year Bond Auction, and ECB President Draghi will give a speech.

Gold price declined on Wednesday by 0.26% to $1,575.7. Silver rose by 0.52% to $27.02. During July, gold declined by 1.78% and silver by 2.13%.

The chart below presents the normalized rates of these precious metals during July (normalized to 100 as of June 29th).

Guest_Commentary_Gold_Silver_Daily_Outlook_July_12_2012_body_Gold__July_12.png, Guest Commentary: Gold & Silver Daily Outlook 07.12.2012

Despite the different directions gold and silver took yesterday, the linear correlation of the two precious metals is still strong and robust, as indicated in the chart herein. During July the linear correlation of their daily percent changes reached the highest level in 2012 so far, which means the two metals' relation has tighten in recent weeks.

On Today's Agenda

China Second Quarter GDP 2012: the current expectations are that the Q2 2012 grew in annul terms by only 7.5%; if the growth rate will be lower than in the previous quarter it might adversely affect commodities prices;

U.S. Jobless Claims: in the latest report the jobless claims declined by 14k to 374,000; this upcoming weekly report may affect the U.S dollar and consequently bullion rates;

Daily Outlook

The minutes of the FOMC meeting didn't provide any hints for a possibility of QE3 in the near future. Therefore precious metals might further decline during the remainder of the week.

The upcoming GDP report of China could affect the commodities markets; if the report will show a lower growth rate in Q2 than in Q1, this could pull down major commodities rates. The U.S jobless claims could affect the forex markets which in turn could also affect precious metals. Finally, if the Euro and other risk currencies will continue to decrease, then they are likely to also pull down bullion.

For further reading:Gold and Silver Monthly Outlook for July

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 research@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.