Bullion market slightly heated up last week as gold and silver prices rallied during last week. The recent cool down in stock markets in the U.S may have contributed to the recovery of precious metals. In the forex markets, the leading “risk related currencies” such as the Canadian dollar and Aussie dollar also depreciated against the USD during last week. Will precious metals change direction and decrease this week? On today's agenda: U.S Consumer Confidence and Bank of Japan’s Kuroda Speaks.
On Friday, gold slipped by 0.37% to $1,386.6; Silver edged down by 0.07% to $22.48. During the May, gold declined by 5.81%; silver, by 6.89%.
The ratio between the two precious metals slightly fell on Friday to 61.68. During the month, the ratio rose by 1.16% as gold slightly out-performed silver.
The gold and silver futures volumes of trade have sharply declined on Friday to 179 thousand and 32 thousand, respectively. These numbers are much lower than the volume a few days earlier. If the volume will continue to fall, this could suggest the volatility of prices of gold and silver due to low volume will decline.
On Today's Agenda
U.S Consumer Confidence: according to the recent monthly update, the consumer confidence index rose in March to 68.1 (M-o-M). The current expectations are that the March index may continue to rise; this report might affect precious metals rates;
Bank of Japan’s Kuroda Speaks: Bank of Japan Governor will give a speech at the Bank’s Institute for Monetary and Economic Studies 2013 International Conference. The title of his speech is "The Financial Crisis and the International Financial System";
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