Precious metals changed direction and rallied on Thursday following the decline in the U.S equity markets. The sharp drop in the Japanese equity markets may have dragged down along with it the Japanese yen and other equity markets. In the U.S: new home sales slightly rose by 2.3% in April compared to March; jobless claims fell by 23k to reach 340k. Flash Manufacturing PMI reports for May came out yesterday: Germany’s PMI rose to 49.9; China’s PMI fell to 49.6. These numbers mean the manufacturing sectors in these countries have contracted during May. Will gold and silver resume their downward trend? On today’s agenda: German Business Climate Survey and U.S Core Durable Goods.
On Thursday, the price of gold bounced back by 1.78% to $1,391.8; Silver rose by 0.16% to $22.50. During May, gold tumbled down by 5.46%; silver, by 6.83%.
The ratio between the two precious metals increased on Thursday to 61.87. During the month, the ratio rose by 1.46% as gold slightly out-performed silver.
Agenda for Friday, May 24th
German Business Climate Survey: This survey estimates the developments (on a monthly basis) of the business climate of Germany as of May. In the recent report for April 2013, the business climate index fell from 106.7 in March to 104.4 in April; if this trend will continue, it might pull down the Euro.
U.S Core Durable Goods: This report will refer to the changes in U.S. orders of durable goods in the manufacturing sector for April 2013. This monthly update may indirectly indicate the developments in U.S. demand for commodities such as oil and gas. As of March 2013, new orders of manufactured durable goods decreased to $216.3 billion;
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