as part of our
During the previous week,
gold and silver tumbled down
. The main event of last weeks in the U.S was the FOMC statement.
The FOMC kept policy unchanged but in the press conference that
followed the statement, Bernanke stated the Fed may taper QE3 by
end of 2013. This was enough to pull down gold and silver and the
US dollar up. On Thursday, it was also reported that China's credit
squeeze, in which Chinese banks have lowered their lending volume,
may have also pressured down the markets. Moreover China's flash
manufacturing PMI slipped in June. In other news: Jobless claims
rose by 18k to reach 354k. Will gold and silver bounce back this
Herein is a short overview that outlines the main publications,
events and decisions that may affect gold and silver next week
between June 24th and June 28th.
FOMC Meeting and Press Conference
Even though the Fed left its policy unchanged; this includes the
Fed's current $85 billion a month asset purchase program. On the
one hand, n the press conference that followed Bernanke suggested
the Fed may decide to ease down QE3 by the end of 2013 and end the
program by mid-2014, providing, of course, the U.S economy will
continue to progress at its current pace.
In the U.S, the upcoming reports including: new home sales, GDP,
and consumer confidence may provide some perspective regarding the
progress of the U.S economy. If these reports will show signs of
growth, they could drag down bullion prices.
Gold holdings of the SPDR gold trust ETF continue to fall: the
ETF's amount of gold held slipped by 2.29% during June. Moreover,
the gold hoarding fell below 1,000 tons for the first time in
years. If gold holdings will further fall, they could indicate the
demand for gold as an investment continues to fall. Finally, the
Indian Rupee changed direction and depreciated against the USD
during last week; if this trend will persist; it may adversely
affect the demand of gold inIndia.
For further reading:
Will Gold Recover from its Recent Fall?
Weekly Outlook of Financial Markets for June