Last week gold and silver continued to zigzag with an unclear trend until Friday when both metals, along with the rest of other markets including forex, commodities and stocks hiked. The EU Summit and the conclusion from it had a lot to do with rally. Will the resolution in the EU Summit keep lowering the anxiety in the financial markets vis-à-vis the European debt crisis? Will commodities continue to rise this upcoming week?
Several U.S related reports came out last week and showed a mixed trend regarding the U.S economy: the U.S consumer confidence report showed the index declined during the month. On the other hand, several U.S related reports, mainly related to the housing market, came out during the week and showed the U.S economy is progressing: U.S new home sales went up; pending home sales index also rose; new orders of core durable goods increased last month.
Gold rose during last week by 2.38%; silver, much like gold, increased on a weekly scale by 3.32%. Furthermore, during last week the SPDR Gold Shares (GLD) also rose by 1.67% and reached by June 29th 155.19.
The video report presents an outlook of gold and silver for the main publications the main publications and events that may affect bullion between July 2nd and July 6th. Some of these reports and events include:
Monday -U.S. ISM Manufacturing PMI: During May 2012, the index declined to 53.5%, which means the manufacturing is growing at a slower rate; this index might affect forex, and oil markets;
Thursday - U.S. Jobless Claims: In the latest report the jobless claims edged down by 6k to 386,000; this upcoming weekly report may affect energy commodities rates;
Friday - U.S. Non-Farm Payroll Report: In the recent report regarding May 2012, the labor market didn't grow much as it did during the first quarter as the number of non-farm payroll employment increased by only 69k; if the upcoming report will continue to show low growth around 100 thousand mark, this may positively affect bullion rates.
In conclusion, I speculate precious metals will continue to rise during the upcoming week. The recent news from Europe regarding the debt crisis and the decision of the EU leaders might continue to affect forex and the commodities markets. If the euro will continue to increase this could also pull up bullion. The upcoming reports regarding the U.S including manufacturing PMI, and non-farm payroll report could positively affect precious metals rates if these reports will continue to show low to little growth.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.