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Gold and Silver Outlook for July 15-19
During last week, gold and silver changed direction and rallied along with other commodities prices. Their rally coincided with the depreciation of the US dollar against currencies such as Euro and Japanese yen. The recent publication of the minutes of the FOMC meeting and Bernanke's speech may have changed investors' perspective think regarding the next move of the FOMC, i.e. the FOMC won't taper its asset purchase program in the coming months. This shift was enough to help rally bullion prices. In other news, U.S jobless claims increased by 16k to 360k; China's gold imports are rising, which might contribute to gold's recovery. Will gold and silver continue to pull up this week?
Herein is a short overview that outlines the main publications, events and decisions that may affect gold and silver next week between July 15th and July 19th.
Based on forthcoming events and latest developments, gold and silver prices might change direction and fall. The sharp rise of both gold and silver prices during last week might lead to a correction at the beginning of the week especially ifChina's GDP report will disappoint investors.Chinais among the leading countries in importing commodities. Bernanke's testimony in Congress and Senate could affect precious metals markets if Bernanke's testimonies and comments to the committees will change the current market expectations as to when and how the Fed will taper its asset purchase program. I suspect the upcoming testimonies could stir up the markets as the uncertainty is high regarding the Fed's next move. If Bernanke will continue with his line of dovish line of remarks, gold and silver prices are likely to further rise. Otherwise, gold and silver could pull back. Until then, the developments in the U.S economy could influence traders: The upcoming U.S reports include: CPI, retail sales, Philly Fed index, jobless claims, and housing starts. If these reports will keep showing progress in the U.S economy, they could adversely affect gold and silver prices.
For further reading:
Weekly Outlook of Financial Markets for July 15-19