Gold and Silver Outlook for April 30

Gold and silver continued their upward trend from most of last week and rose again yesterday. The U.S pending home sales report came out yesterday and showed a moderate gain in the index: the forward looking index rose by 1.5% to 105.7 in March. Will gold and silver changed direction and fall? On today's agenda: German Consumer Climate, Flash Spain’s GDP Q1 2013, Canada's GDP by Industry, U.S Consumer Confidence and China Manufacturing PMI.

On Monday, the price of gold declined by 0.95% to $1,467.4; Silver also increased by 1.53% to $24.12. During the month, gold fell by 7.99%; silver, by 14.74%.


The gold and silver futures volumes of trade have declined on Monday to 144 thousand and 75 thousand, respectively. These numbers are lower than the volume traded last week. If the volume will remain low today, this could lower the odds of a sudden sharp movement in the prices of gold and silver.

On Today's Agenda

China Manufacturing PMI: Based on the recent report for March the Manufacturing PMI inched up to 50.9; this means that China's manufacturing sectors is expanding at a faster rate. The flash report showed that the PMI slipped in April but remained above the 50 point mark. If in the upcoming report the PMI will decline below the 50 point mark, it could signal slowdown in China’s economy. If the index will dwindle, this may also adversely affect precious metals prices;

Canada's GDP by Industry: In the previous update regarding January, the real gross domestic product rose by 0.2%. This report may affect the Canadian dollar, which is strongly correlated with major bullion prices;

U.S Consumer Confidence: according to the recent monthly report, the consumer confidence index fell again in February to 59.7 (M-o-M). The current expectations are that the March index may continue to fall;

For further reading:

Gold and Silver Outlook for April 29-May 3

Weekly Outlook of Financial Markets for April 29- May 3

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