News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
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
More View more
Guest Commentary: Gold & Silver Daily Outlook 07.24.2012

Guest Commentary: Gold & Silver Daily Outlook 07.24.2012

Lior Cohen: Commodities Analyst,

Precious Metals resumed their downward trend as both precious metals declined on Monday. Many other commodities such as oil also tumbled down. China flash Manufacturing PMI was released tonight and showed the index rose to 49.5 but still means the manufacturing is contracting. Nonetheless may positively affect commodities rates. The ongoing decline of the Euro is also pulling down bullion rates. On today's agenda: Flash Euro Area Manufacturing PMI, Canada's Retails Sales, Bernanke's Speech, Flash U.S. Manufacturing PMI and Japan's Trade balance.

Gold price declined on Monday by 0.34% to $1,577.4; Silver also decreased by 0.95% to $27.04. During July, gold fell by 1.67% and silver by 2.06%.

On Today's Agenda

Flash Euro Area Manufacturing PMI: This report will provide an indicator to the economic progress of the Euro zone's manufacturing conditions; this news, in turn may affect the Euro/USD and consequently also bullion;

Flash U.S. Manufacturing PMI: During June the ISM index declined to 49.7%, which means the manufacturing is contracting; this index might affect commodities markets;

U.S. Treasuries / Gold & Silver– July

The U.S. 10-year Treasury yield continues to decline and reached 1.47% on Monday. The fall in LT securities yields may indicate the demand for "secure investments" continues to rise. During July there was a high and positive correlation between U.S. long term Treasury yield and bullion: the linear correlation between 10 year yields (percent change) and gold price reached 0.716. If the LT U.S. treasury yield will continue to drop, it might indicate that metals rates will also follow and decrease.

Guest_Commentary_Gold_Silver_Daily_Outlook_July_24_2012_body_Treasury_Yield_2012_July_24.png, Guest Commentary: Gold & Silver Daily Outlook 07.24.2012

Daily Outlook

The weak Euro is pulling down not only commodities prices but also other currencies such as Aussie dollar and CHF. If the Euro will continue at this direction it could adversely affect bullion. The ongoing fall in the U.S LT yields suggests traders are becoming more "risk averse". This could also suggest bullion rates will suffer from this market sentiment. The upcoming reports regarding U.S Canada and EU could affect their respective currencies which in turn may affect precious metals rates. I still think the general direction of bullion rates will be downward unless there will be some breaking news.

For further reading: Gold & Silver | Weekly Outlook July 23-27

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

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