According to its usual weekly scale, gold and silver did not move much in last weeks’ trading, despite seeing some slight gains on Friday.Gold showed quite a sharp rise on Friday by gaining 1.21% to $1,662 whole silver also traded up by gaining 2.96% to $31.35. Overall in the month of March, gold showed a decline of 2.86% and silver showed a greater decline of 6.84%. The similar patterns shown by the two metals strongly indicate a positive correlation between the two, even though Silver has underperformed more than Gold this month. Currently, the two metals are trading up.
Fed Chairman Ben Bernanke recently gave his speech and stated that the labour market is still weak. This statement could possibly push gold and silver prices up on speculation of possibly another stimulus plan in the future. ECB President Mario Draghi is also due to speak today, which could impact the Euro and consequently commodities.
There a number of important reports and news events to be released today following Bernankes speech:
U.S. Pending Home Sales: This report shows the changes in pending home sales in the U.S. for February 2012; in the recent report the pending home sales index rose by 2% compared with the previous month's index; based on last week's reports on housing sales, the pending sales could possibly show a decline. If this happens to be the case, it could have a negative impact on the Greenback.
German Business Climate Survey: This survey estimates the developments of the business climate of Germany.If this report maintains its positivity of recent months, it could possibly have a positive impact on the Euro
ECB President Draghi Speaks: Following the March ECB rate decision in which the rate remained at 1%, the President of the ECB will give a speech. The Greek debt crisis and the progress of the EU economy are the two main issues that could possibly come up. Draghis’ speech may influence the direction of the EUR/USD Major Pair.
To conclude, last week saw both gold and silver prices continue to move with no solid trends or in no clear directions. There is a strong possibility that the two metals may move in similar patterns this week. Ben Bernankes’ Speech could end up being positive for gold and silver whilst the U.S Pending home sales report is also well anticipated as it could also turn out positive for the two metals.
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