Source: ForexYard
Both Gold and Silver rallied during Monday’s trading after showing quite calm price movements last week.However, the two metals did not do much during yesterdays’ trading, and both Gold and Silver are currently traded down.
The price of gold dropped slightly on Tuesday by 0.03% to $1,687, whilst silver also experienced a slight drop of 0.41% to $32.62.
There are a number of news events and reports to be published to day which Metal traders should keep an eye on:
Euro Area M1, M3 Monthly Update: In the previous report, the annual growth rate for M3 rose to 2.5%; M1 increased to 2.0% and loans to private sector rose to 1.1%. If the M1 and M3 will continue to rise in the March report it could serve as another indicator for the rising inflation pressures in the Euro Area, and theres a possibility that it could affect next month’s ECB’s interest rate decision.
U.S Core Durable Goods: This monthly report will examine the changes in U.S. orders of durable goods in the manufacturing sector during February 2012. This report may indirectly present the changes in U.S. demand for commodities including crude oil. According to an estimate for January 2012, manufactured durable goods decreased to $206.1 billion.Non-defense new orders for capital goods also dropped to $79.5 billion. If negative results continue to be published , it could weaken the US dollar and therefore have a positive affect on both Gold and Silver prices.
Great Britain Updated GDP 4Q 2011: This will be the final projection of the fourth quarter real GDP of GB. In the previous estimate of the GDP for the 4Q2011 contracted by 0.2%.
To conclude, both Gold and Silver didn’t produce much activity yesterday following the gains made by the two metals in the past few business days. It comes as no surprise as the number of news items yesterday were lacking in number,so the bullion market was rather calm. Today however, the U.S core durable goods monthly report will be published which may have an affect on the Greenback which could get the prices of Gold and Silver moving.Its possible that the report will continue to show a drop in durable goods purchases which is an indication of a slowdown in the U.S economy. The EU M1,M3 report will also be published today mainly affecting the Eur/Usd Major pair, but pay attention to the Precious metals as they may also be affected as a result.Not a lot of movement is expected to occur from Gold and Silver today but we should see some slight gains over the next few business days.
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