FOREXYARD: Forex News Blog

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• Precious Metals Outlook
• Euro Back Up While Gold Sinks
• Aussie Dollar Falls Whilst Greenback Sees Gains

Precious Metals Outlook Posted: 29 Mar 2012 05:24 AM PDT Prices of both gold and silver steeply declined during yesterday’s trading and therefore cancelling out the gains made in the beginning of the week.The price of the yellow metal fell on Wednesday by 1.61% to $1,660 while silver also showed a decline of 2.41% to $31.83. Overall during the month of March Gold has dropped by 2.97% whilst silver dropped by 8.11%. The U.S core durable report was published yesterday and the results were positive, even though the figures fell short of the projections.The report not only affected metals, but other instruments too,including  US Stock market indexes as well as other commodities. Meanwhile, the European finance ministers will be meeting today, and there is a possibility that they will agree to raise the rescue funds to 1 trillion Euros in order to keep the debt-crisis at bay and ease market concerns.If this outcome will take place, the Euro could be boosted as well as having a positive affect on both gold and silver prices. Besides the finance ministers meeting today,there are a few additional economic events taking place today. This includes the U.S Jobless Weekly Update,Final U.S GDP 4Q 2011 Estimate and Fed Chairman Ben Bernanke is due to say a few words. Over the past few trading days we have seen both metals change direction rather sharply whilst moving in no clear direction. Certain reports and figures have disrupted gold and silver’s gains made early in the week and the recent protests in India which have moved into their second week,are also partly responisbile for the decline in gold prices. Today the EU Summit will take place and its possible that the outcome of the meeting will have a strong affect on the Euro and as a result, could affect the direction of the two metals.The U.S jobless weekly update is another report which has the potential to impact the commodities market due to its possible affect it will have on the US dollar.

Euro Back Up While Gold Sinks Posted: 28 Mar 2012 07:28 PM PDT Even though we saw the U.S Dollar show some gains over the Euro during Wednesday’s trading, news out of the Euro-zone has been comforting for the 17 nation currency. The Euro was 0.4% shy of a one-month high after European finance ministers are reportedly set to discuss plans of increasing the rescue fund.The Euro was preparing for its first quarterly gain against the Greenback since June prior to data reports out of Germany, the region’s largest economy that unemployment in the region was it its lowest in 20 years.The figures showed that the number of people out of employment dropped 10,000 from the month of February. A draft statement written for European finance ministers showed the goverments in the region are preparing for a one-year increase rescue aid to 940 billion euros to keep the debt crisis under control. Meanwhile, the safe-haven commodity gold showed a drop of 1.6% as the yellow metal failed to breach the $1,700 mark. As some of you may or may not know,gold and the US dollar have a very interesting connection. Both known as market safe-havens in times of uncertainty or economic difficulties, but the real connection is when the Greenback strengthens, the metal weakens and visa-verse. Yesterday’s trading saw the dollar make some gains over some currency counterparts which had a negative affect on gold prices. Protests in India against tax hikes on non-branded gold jewellery as well as gold imports have gone into their second week on Wednesday which is contributed to the drop in gold price occurring late Wednesday. India is the World’s top gold consumer, and the protests are reportedly frustrating imports during a time where the metal is at a high demand.

Aussie Dollar Falls Whilst Greenback Sees Gains Posted: 28 Mar 2012 01:20 PM PDT A drop in Chinese equities saw the Australian dollar fall to a new year low. The Aussie Dollar dropped 0.7% to $1,0375 right back to the rate it was traded at the beginning of the year.China, the worlds second largest economy receives a large amount of exported commodities from Australia, and thus its no surprise that the Australian currency will take a hit with negative news coming out of China. The Euro suffered losses against the US Dollar amid concerns that the Euro-zone leaders could possibly increase the size of the rescue fund. Wednesday’s trading saw the U.S dollar making some hard fought gains over the Euro. The Euro fell to $1,3298 from $1,3331 during North American Trading late Tuesday, as euro-zone finance ministers apparently discussing a plan to boost the region’s firewall in order to contain the debt crisis. The Greenback also showed its strength by trading up against 16 of its Major Counterparts due to concerns of slowdown in global growth, causing investors to turn to the safe-haven currency.

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