Gold and Silver Outlook for October 22nd

The prices of gold and silver resumed their upward trend and rose again during yesterday’s trading. The gold market was very quiet on Monday as the volume of trade in the CME was the lowest since Christmas Day of 2012. The modest volume could start to pick up today once the U.S employment report will come out. If the report surprises the markets, this could also stir up the precious metals market. Will gold and silver resume their upward trend from last week? On today’s agenda: U.S. Non-Farm Payroll Report, Canada Retails Sales and Australia's CPI.       

On Monday, gold slightly rose by 0.10% to $1,315.6; Silver also rose by 1.66% to $22.25. During October, gold decreased by 0.84%; silver rose by 2.60%. The ratio between the two precious metals slightly fell on Monday to 59.13. During October, the ratio decreased by 3.36% as silver has slightly out-performed gold.

The gold and silver futures volumes of trade have declined and reached on Monday 79 thousand and 34 thousand, respectively. For gold this trade volume is the lowest level since the end of December 2012. If the volume changes direction and pick up in the coming days, this could suggest the odds of sudden sharp shift in the rates of gold and silver as a result of high volume will rise.

On Today's Agenda

U.S. Non-Farm Payroll Report: In the last employment report for August 2013, the labor market slightly expanded: The number of non-farm payroll employment increased by 169k – lower than the number many had expected; the U.S unemployment rate edged down to 7.4%; if the employment increase again by over 150 thousand (in additional jobs), this may pull back down gold and silver;

Canada Retails Sales: This report will refer to the retails sales in Canada as of August. In the previous report regarding July 2013, retails sales increased by 1%;

For further reading:

Gold and Silver Weekly Forecast for October 21-25

Is the Golden Era of Gold Over?

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