Gold and Silver Outlook for June 25

After last week’s plunge in gold and silver prices, precious metals continued this trend and fell on the first day of the week.  The Fed’s next move seems to keep precious metals’ high sales. Will gold and silver bounce back today after they had declined in recent weeks? On today's agenda: U.S New Home Sales, GB inflation hearings, and U.S Consumer Confidence.

On Monday, gold declined by 1.15% to $1,276.8; Silver also plummeted by 2.33% to $19.493. During June, gold declined by 8.32%; silver, by 12.30%.

The ratio between the two precious metals sharply rose on Monday to 65.50. During June, the ratio rose by 4.55% as gold out-performed silver.

The gold and silver futures volumes of trade have declined on Monday to 171 thousand and 89 thousand, respectively – the lowest volume of trade in recent days. This low volume might continue to decline, which will impact precious metals volatility. If the volume will fall in the coming days, this could lead to a decrease in volatility of precious metals. The chart below presents the volume of trading gold and silver futures in the CME from the past several weeks. 

On Today's Agenda

U.S Consumer Confidence: according to the latest monthly report, for April, the consumer confidence index rose to 76.2 (M-o-M). The current expectations are that the April index may continue to increase; this report might affect precious metals;

U.S. New Home Sales: in the previous report (opens pdf; for April), the sales of new homes slightly rose to an annual rate of 454,000 – a 8.8% gain (month over month); if the number of home sales will continue to increase, it may provide a sign of recovery in the U.S real estate market;

For further reading:

Gold and Silver Prices Outlook for June 24-28

Is the Golden Era of Gold Over?

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