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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • UK PM Johnson says virus restrictions likely to last 6-months $GBP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/CjCiVL0C9q
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/S9CEcBm5Qe https://t.co/0gQ60Dd1S5
  • Optimism $GBP https://t.co/UjSo3Dpthr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.44%, while traders in NZD/USD are at opposite extremes with 70.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/n7ePyLk3EB
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-22
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.13% Gold: -0.34% Silver: -1.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/1fgVHj1F6Z
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.12% 🇳🇿NZD: 0.01% 🇨🇦CAD: -0.03% 🇨🇭CHF: -0.17% 🇬🇧GBP: -0.19% 🇪🇺EUR: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/2CA80kFhl2
  • Coming up at half past the hour. Do join me if you can, using the link below https://t.co/RAiCJNLuSC
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.18% FTSE 100: 0.49% France 40: 0.40% US 500: 0.22% Wall Street: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Jb7LZOruhP
Guest Commentary: Gold & Silver Daily Outlook 08.24.2012

Guest Commentary: Gold & Silver Daily Outlook 08.24.2012

2012-08-24 11:49:00
Lior Cohen: Commodities Analyst,
Share:

The prices of gold and silver, as expected, hiked during yesterday as a clear cut market reaction to the publication of the minutes of the FOMC meeting. The minutes revealed that many FOMC members consider “monetary accommodation would likely be warranted fairly soon”. In other news: The U.S new home sales report came out and showed a rise in sales. This news might have some lingering effect on today's bullion market. The U.S jobless claims rose by 4k to reach 372k. On today's agenda: GB revised GDP Q2 2012, and U.S Core Durable Goods.

On Thursday, Gold hiked by 1.97% to $1,672.8; Silver also traded up by 3.04% to $30.54. During August, gold rose by 3.6%; silver, by 9.4%.

The ratio between the two precious metals declined again on Thursday to 54.77. During August the ratio decreased by 5.31% as gold under-performed silver.

Guest_Commentary_Gold_Silver_Daily_Outlook_August_24_2012_body_Ratio__August_24.png, Guest Commentary: Gold & Silver Daily Outlook 08.24.2012

On Today's Agenda

GB revised GDP Second Quarter 2012: This report will present the revised quarterly growth rate of the British economy during the second quarter of 2012; according to the preliminary estimate the second quarter contracted by 0.8% (yearly scale);

U.S Core Durable Goods: This report may indirectly present the changes in U.S. demand for commodities such as crude oil. As of June 2012, new orders of manufactured durable goods rose by $3.4 billion to $221.6 billion; if this report will continue to be positive then it could strengthen not only the USD but also bullion;

Currencies / Bullion Market –August Update

The Euro/ USD edged up again on Thursday by 0.28% to 1.2564. Alternatively, other currencies including Aussie dollar and Canadian dollar depreciated on Thursday against the USD by 0.62% and 0.25%, respectively. The linear correlation between gold and Euro, Aussie dollar are still strong and positive: during the month, the correlation between the gold and EURO/USD reached 0.49 (daily percent changes); between gold and AUD/USD, 0.316. Thus, if these currencies pairs will fall against the USD, it could also pressure down the prices of metals.

Daily Outlook

Precious metals hiked during yesterday, as an expected reaction, following the publication of the minutes of the FOMC meeting that rekindled the expectations from the Fed to issue another quantitative easing plan in the near future. I still think it’s not certain how this QE will help the U.S economy because it seems there is a diminishing return for QE programs. The news of the rise in new home sales sold may curb the rally of bullion rates while the rise in U.S jobless claims could have adversely affected the USD. Today's reports including GB GDP and U.S core durable goods could also play a role in today's precious metals markets (as specified above).

For further reading: Gold and Silver Outlook for August

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