Last week gold and silver resumed their downward trend and edged down during most of last week. Bernanke didn't hint of a stimulus plan in his testimonies on the Hill; he also didn't offer any information about the future steps of the FOMC. According to the recent reports that came out last week the U.S housing starts rose during June, while existing home sales declined by 5.4%; the Philly Fed index remained negative but slightly rose, while retail sales edged down.
All these reports paint a mixed signal as to the economic progress of the U.S. If the upcoming U.S reports will paint a clearer picture of the developments in the U.S, then they may have a more substantial effect on the bullion market. Gold slipped during last week by 0.58%; further, during said time the average rate reached $1,583.02 /t. oz which is 0.17% above the previous week's average rate of $1,580.38 /t. oz.
Silver also edged down on a weekly scale by 0.24%; on the other hand, the average rate reached $27.25/t oz which is 0.27% above the previous week's average $27.18/t oz. Furthermore, during last week the SPDR Gold Shares (GLD) also edged down by 0.3% and settled by July 20th at 153.67.
The video report presents an outlook of gold and silver for the main publications the main publications and events that may affect precious metals between July 23rd and July 27th. Some of these reports include:
Tuesday - U.S. Flash Manufacturing PMI: During June 2012 the ISM index declined to 49.7%, which means the manufacturing is contracting; this index might affect forex, crude oil and natural gas markets;
Wednesday - U.S. New Home Sales: In the recent monthly report (regarding May 2012), the sales of new homes increased to an annual rate of 369,000 - a 7.6% increase (month over month);
Friday - First U.S GDP 2Q 2012 Estimate: In the recent estimate the U.S GDP expanded by 1.9% during the first quarter. If there will be a sharp shift in the growth rate from Q1 to Q2 this could affect US dollar and commodities. This could also influence FOMC members in anticipation of next week's FOMC meeting.
I guess the bullion market will continue to show weakness as precious metals rates will further decline. This downward trend might have a moderate curve especially if the upcoming U.S reports won't present any substantial changes. The upcoming reports from China, Canada, the Euro Area and U.S such as manufacturing PMI, retails sales, and housing market reports might affect the commodities and forex markets. If these reports will show little growth in these economies then they might adversely affect commodities rates including precious metals. Bernanke's speech might affect the markets if he hints of the possibility of QE3 in the near future. But I guess this won't be the case as it was last week when he testified on the Hill.