The Last Week
Gold and silver moved in an unclear trend during last week as they have shifted from gains to losses almost on a daily basis. The week kicked off with the whole Cyprus bailout plan. The recent news from this front is that Cyprus is still struggling to receive the EU bailout fund. This development may have contributed to the rise in demand for safe haven investments and also pulled down the Euro. TheFOMC meeting, which was another big event this week, didn’t result in big headlines and thus didn’t affect the prices of precious metals. In the U.S several reports came out and some showed signs of growth in the economy: during March the Philly fed index rallied from its negative figure back in February; the housing starts and building permits rose during February. On the other hand, jobless claims slightly rose during last week. During last week, the Euro/USD currencies pair declined; other leading currencies also such as the Aussie dollar and Yen appreciated against the USD. This mixed trend in the forex market may have contributed to the mixed trend in the precious metals markets. By the end of the week, the Euro/USD declined by 0.67%; the Aussie dollar appreciated by 0.34% against the USD. Finally, gold rose by 0.85%; silver slipped by 0.54%.
Here is a short recap of the changes in precious metals prices between March 18th and March 22nd:
Precious Metals Recap:
Gold price increased during last week by 0.85%; moreover, during said week, the average rate reached $1,608.66 /t. oz which was 1.28% above last week’s average rate of $1,588.28 /t. oz. Gold ended the week at $1,606.1 /t. oz.
Silver, unlike gold, declined during last week by 0.54%; further, the average rate edged down by 0.14% to reach $28.86/t oz compared to last week’s average $28.9/t oz.
What Next
The gold market fell during the session on Friday, as we continue to grind away just above the $1600 level. This level of course was previously resistant, and as a result now offers quite a bit of support. We have essentially been going sideways between the $1600 and the $1620 level over the last couple of sessions. With this being said, we think that eventually the market will try to breakout above the $1620 level, and once it does we will be heading towards the $1660 area next.
Keep watching
over the weekend for the latest developments about Cyprus crisis.
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GOLD CURRENT TRADE
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Our Position
Bought 1Apr Gold on 20/03/2013
Entry: 1605
Sell Stop : 1605
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SILVER CURRENT TRADE
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Our Positions
Bought 1May Silver on 21/03/2013
Entry: 29.15
Sell Stop : 28.49
Bought 1May Silver on 22/03/2013
Entry: 28.60
Sell Stop: 28.49
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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
