Gold and Silver Outlook for April
Tuesday, April 2, 2013
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Here are several factors that may have pressured down of gold and silver prices during the month:
- Several U.S reports showed growth of its economy: the manufacturing PMI rose to 54.2%; housing starts (opens pdf) increased by 0.8%; the forth quarter GDP was revised up to 0.4%; the Philly fed index bounced back in March to 2%. These reports may have dragged down precious metals prices;
- The recent U.S non-farm payroll report was positive as 236k jobs were added; the unemployment rate edged down to 7.7%; this report tend to be negatively correlated with gold and silver rates;
- The recent FOMC meeting didn’t contribute any insight behind the future steps of the FOMC. Nonetheless, as long as the FOMC doesn’t augment its monetary policy, the prices of precious metals aren’t going anywhere;
- The depreciation of several other currencies including Euro and Japanese yen during March;
- China, among the leading countries in importing gold, showed little signs of recovery;
Here are several factors that may have pulled up gold and silver during the month:
- Several U.S reports were negative, e.g. new home sales declined in February. This may have pulled down the USD;
- The appreciation of several currencies such as Aussie dollar and Canadian dollar during the month against the USD. These currencies tend to be positively correlated with precious metals;
- The appreciation of the Indian Rupee may have pulled up the demand for gold in India, among the leading importers of gold;
- The developments in Europe including the whole Cyprus bailout debacle. This news may have raised, for a short period, the demand for safe haven investments;
- The implementation of the spending cuts in the U.S may eventually curb the growth of the U.S economy;
- The ongoing rise in the U.S money base during 2013 (see below for more).
- The recent rise in the U.S jobless claims during the last week of March;
The pledge of the FOMC to maintain low rates until mid 2015;
Ayman Khlifat on Twitter
Follow @aymankkhlifat
Here are several factors that may have pressured down of gold and silver prices during the month:
- Several U.S reports showed growth of its economy: the manufacturing PMI rose to 54.2%; housing starts (opens pdf) increased by 0.8%; the forth quarter GDP was revised up to 0.4%; the Philly fed index bounced back in March to 2%. These reports may have dragged down precious metals prices;
- The recent U.S non-farm payroll report was positive as 236k jobs were added; the unemployment rate edged down to 7.7%; this report tend to be negatively correlated with gold and silver rates;
- The recent FOMC meeting didn’t contribute any insight behind the future steps of the FOMC. Nonetheless, as long as the FOMC doesn’t augment its monetary policy, the prices of precious metals aren’t going anywhere;
- The depreciation of several other currencies including Euro and Japanese yen during March;
- China, among the leading countries in importing gold, showed little signs of recovery;
Here are several factors that may have pulled up gold and silver during the month:
- Several U.S reports were negative, e.g. new home sales declined in February. This may have pulled down the USD;
- The appreciation of several currencies such as Aussie dollar and Canadian dollar during the month against the USD. These currencies tend to be positively correlated with precious metals;
- The appreciation of the Indian Rupee may have pulled up the demand for gold in India, among the leading importers of gold;
- The developments in Europe including the whole Cyprus bailout debacle. This news may have raised, for a short period, the demand for safe haven investments;
- The implementation of the spending cuts in the U.S may eventually curb the growth of the U.S economy;
- The ongoing rise in the U.S money base during 2013 (see below for more).
- The recent rise in the U.S jobless claims during the last week of March;
The pledge of the FOMC to maintain low rates until mid 2015;
Ayman Khlifat on Twitter
Follow @aymankkhlifat
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Forex And Commodities
