Last week gold and silver started off falling but by they have bounced back during the last few days. There were several reports and statements that helped rally the Euro. GB's GDP contracted in the second quarter of 2012; ECB President Mario Draghi's pledge to preserve the Euro; by Friday the second quarter U.S. GDP expanded by only 1.5%, which wasn't much different than many had anticipated. These events and reports may have also contributed to the rise in bullion rates.
Gold rose during last week by 2.52%; further, during said time the average rate reached $1,602.68 /t. oz which is 1.24% above the previous week's average rate of $1,583.02 /t. oz. Silver also rose on a weekly scale by only 0.72%; on the other hand, the average rate nearly didn't change as it reached $27.25/t oz which is 0.01% above the previous week's average $27.25/t oz. Furthermore, during last week the SPDR Gold Shares (GLD) also rose by 2.5% and settled by July 27th at 157.54.
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 30th and August 3rd. Some of these reports include:
Wednesday - FOMC Meeting: Following the testimonies of Bernanke at the Hill and the minutes of last month's FOMC meeting, it seems as if there won't be any substantial changes in the upcoming FOMC meeting. On the other hand, the recent appreciation of the USD, the low growth rate in employment and GDP for Q2 are probably pulling the odds up of another QE in the horizon. I think the FOMC won't announce of another stimulus plan in this upcoming meeting. I speculate if there won't any announcement of QE3 or any hints of the Fed moving toward this direction in the near future, gold and silver prices are likely to decline; if the FOMC will consider another stimulus plan it could pull up bullion;
Friday - U.S. Non-Farm Payroll Report: in the recent report regarding June 2012, the labor market didn't expand much as it did during the first few months of 2012; if the upcoming report will continue to show low growth of below 100 thousand (in additional jobs), this may raise the chances of the Fed introducing additional stimulus plan in 2012; this report might affect commodities (see here my last review on the U.S employment report).
In conclusion, I guess the bullion market will start off the week with little movement and as the week will progress the volatility may rise; the FOMC decision could affect the bullion rates especially if the FOMC will announce of QE3. But I think this won't be the case mainly since the Fed had already extended operation twist in the recent FOMC meeting. The additional reports and decisions could also affect bullion rates especially if there will a significant change. If the U.S reports including manufacturing PMI and non-farm payroll report will be below expectations then they could also adversely affect commodities. If the MPC or ECB or both will change the monetary policy it could affect the Euro and in turn bullion.
For further reading: Gold and Silver Outlook for August