Gold and silver didn't do much yesterday and gold edged down while silver moderately declined. The U.S jobless claims didn't reveal a major shift in the number of claims. The American trade deficit increased. China's industrial output growth didn't match expectations as the retail sales rose in April by only 14.1% compared to a year earlier, the least since February 2009. This news is currently adversely affecting the Asian markets and may also adversely affect bullion trading during the day. On today's agenda: U.S PPI, Great Britain PPI and Canada's employment report.
Gold edged up on Thursday by 0.08% to $1,595.5; silver on the other hand continued its downward trend and decreased by 0.22% to $29.18. Today's publications may affect bullion and consequently SPDR Gold Trust (GLD). During yesterday's trading GLD edged up by 0.19%. But as I will explain herein I speculate this direction may change during today's trading.
St. Deviation of Bullion
During May the volatility of bullion prices has declined as their standard deviations have decreased and reached their lowest level in 2012. Therefore, the prices of bullion are much less volatility in recent weeks than in earlier stages of 2012.
On Today's Agenda
U.S. PPI: In the previous report for March the index for finished goods remained flat compared with February's rate and increased by 2.8% in the past 12 months; this news might affect today's movement of bullion;
Forex & Bullion - May Update
The euro/USD changed direction on Thursday by 0.05% to 1.2937; furthermore, the CAD and AUD also moderately appreciated; if the USD will change direction and will continue to appreciate against these currencies; this may adversely affect bullion.
Gold changed direction yesterday and edged up while silver continued its descent. I speculate bullion will resume their decline and trade down during today's trading. The upcoming report on the U.S PPI might affect the markets including precious metals markets. The recent news of China's slower than anticipated growth in industrial production might also help pull down commodities.
Finally the ongoing developments in Greece and France might keep the Euro weak and thus adversely affect bullion.