Gold & Silver – Daily Outlook August 22

The week started with gold and silver trading up, after they had been climbing up during each day of last week. Will this trend continue?

Today, the US Mortgage delinquency rate for the second quarter of 2011 will be published.

Gold and silver continue to break new highs: Gold rose on Friday by 1.66% to $1,852; silver also sharply inclined by 4.3% to $42.47.

USD & US Treasuries / Gold & silver– August update

The Euro/USD exchange rate continues to zigzag and finished the week on a 0.45% increase. The US 30-year Treasury yields continue to drop as their demand continues to rise over the fall of the stock markets.  The high volatility in the forex market made a comeback; if the forex markets will continue with its high volatility, it could push up gold and silver. Also as the demand for U.S. Treasury bills rises, it indicates that traders seek safe heavens including gold and silver. 

U.S. Mortgage delinquency

Today, the U.S. mortgage delinquency report will be published. During the first quarter, the seasonally adjusted  deliquesce rate slightly increased to 8.32% – up by 7 basis points from the fourth quarter 2010, but declined by 174 basis points from 1Q 2010. This figure is another good indication of the real estate market condition in the U.S. and consequently the economic progress of the US. 

 Gold and silver Outlook:

Gold and silver continue their climb up at higher pace than in the past several days after the stock markets resumed their sharp falls over concerns of another recession in US and Europe I still think that gold and silver will continue their rally, but in the next several days they will slow down their ascent and will trade up at a slower pace than in the beginning of August.

 For further reading:

 Gold and silver prices outlook for August 2011

Weekly outlook for August 22-26


Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.