Gold & Silver Prices – Daily Outlook August 30

Gold and silver started off the week with moderate falls as the US Treasury bill yields fell and the S&P500 index inclined. Today, the U.S. consumer confidence report will be published and the minutes of the last FOMC meeting.

Gold and silver started the week with moderate falls: Gold price fell on Monday by 0.32% to $1,791; silver also declined by 0.98% to $40.60. During August, gold increased by 9.8%, and silver by 1.2%. 

Bloomberg reports that gold demand in India – the biggest importer of gold worldwide, may surge by 25% during its festival season – a time when Indians purchase gold jewelry, coins and bars. If this news will prove to have merit it could help in gold’s rally in the weeks to come.

On Today’s Agenda

Minutes of FOMC: In the recent FOMC meeting it was decided to keep the US interest rates low until mid-2013. This ruling wasn’t taken unanimously among FOMC members. The minutes might provide some further insight on this decision and may also suggest what could be up ahead in regards to implementing any further stimulus plans;

US consumer confidence report: The current expectations are that the July consumer confidence index may show a further decline; this news may affect commodities traders including in the gold and silver market.

US Treasuries / Gold & silver– August update

The US 10-year Treasury yields changed direction and sharply inclined yesterday by 0.09 per cent points, but during August they have fell by 0.54 per cent points. If the demand for U.S. Treasury bills will drop and the yields will further rise, it may further indicate that traders are pulling away from safe heavens financial instruments including gold and silver.

Gold and silver Outlook:

Gold and silver slightly fell yesterday, after they have rallied in the previous few days.  The uncertainly in the financial markets is still high so gold and silver may change direction again and rise. The movement in the stock market and the bonds market may also contribute to the changes in the gold and silver throughout the day. I still speculate that gold and silver will continue to rally at a slower pace than during the second week of August.

For further reading:

 The fall and rise of gold & silver | weekly recap 22-26 August

Weekly Outlook for August 29- 2 September


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