Greetings!, Characterized by analysts as a risk off day, we witnessed sharply lower pricing in gold and silver. Upcoming fundamental data that can easily influence the price of both gold and silver are on the horizon. Friday's U.S. job report is expected to be tepid at best. A weak U.S. ISM business report today put significant pressure on both the U.S. equities markets as well as commodities, which of course included gold and silver. Multiple elections being held this weekend in Europe could drastically influence current austerity measures now in effect in the entire E.U. The European Central Bank will continue its current interest rate structure for the nonce - no significant information hinting at possible further easing of the monetary policy has surfaced. Concern also currently exists with data showing slowing growth in China as well as Europe and this data could be a bullish factor for the U.S. dollar, making it a safe haven, thereby putting continued pressure on the precious metals markets. This weekend, as well as Friday's jobs report, will be critical in defining whether or not the precious metals markets, specifically gold, will hold at this level and find support. These next three days should lend deeper insight as to the future direction of both gold and silver.
As always, wishing you good trading, Executive Producer |
