as part of our
prices of gold and silver
slightly declined yesterday. Their modest drop didn't coincide with
the moderate appreciation of "risk currencies" such as Canadian
dollar and Aussie dollar against the USD. Yesterday, the U.S retail
sales report came out. The report showed a moderate gain in the
retail sales inched up by 0.1%. Bank of Japan published its
monetary policy statement: the Bank left its policy unchanged. On
today's agenda: EU GDP for Q4 2012, U.S. Jobless Claims, and ECB
On Wednesday, the price of gold declined by 0.27% to $1,644.5;
Silver also decreased by 0.48% to $30.87. During the month, gold
decreased by 0.97%; silver, by 1.49%.
The modest drop in precious metals rates didn't coincide with
the developments in the forex market: the Canadian dollar, Japanese
yen and Aussie dollar appreciated against the USD by 0.05%, 0.1%
and 0.64%, respectively. The linear correlation between and several
leading currencies pairs such as USD/CAD and AUD/USD are still
mid-strong at -0.25 and 0.41, respectively. They suggest that if
these currencies will change course and fall against the USD, they
may pressure down bullion rates.
The ratio between the two precious metals rose on Wednesday to
53.27. During the month, the ratio edged up by 0.53% as gold
slightly out-performed silver.
On Today's Agenda
EU GDP for Q4 2012: According to the latest update, the French
GDP contracted by 0.3% in the fourth quarter of 2012. Furthermore,
the German economy contracted by 0.6% in Q4 2012. The expectations
were on a 0.5% drop. These figures are likely to pull down the Euro
currency. Thus, this could also lead to a decline in the prices of
commodities including gold and silver.
ECB Monthly Bulletin: This monthly update for January examines
the economic developments of the Euro Area including price
stability, interest rate decisions and governments' debt; this
report might provide some insight behind the updated expectations
of the EU growth;
U.S. Jobless Claims: in the previous report the jobless claims
fell by 5k to reach 366k; this upcoming weekly report may affect
the U.S dollar and consequently precious metals.
For further reading:
Choosing Between Gold and Silver
Gold and Silver Outlook for February 11-15