Events Impacting Gold And Silver In The Week Of February 23d

In this article, we summarize which events in the week ahead could impact the gold price and silver price. At the bottom of the article we explain that these events are generaly no fundamental drivers, but mostly the result of trading in COMEX futures.

Over the last week, between February 13th and 20th, both gold and silver moved lower, especially in the first half of the week. Gold tested three times $1200 during the week, as silver did the same with the $16.25 price level. Uncertainty around Greece caused several rallies, but they were short lived. The “risk on” mood seems to be back in the markets. Consequently, the appetite for a safe have seems to be lost; even the TLT 20 year U.S. Treasuries is quite aggressively losing value in the last couple of weeks.

The precious metals continue to be vulnerable. That is, in our opinion, not because of economic data, but because of futures positions in the COMEX market. We are preparing an analysis of the COMEX gold market, and the potential effect on the gold price, which concludes that there is more downside potential in the gold price. Keep an eye on our homepage as we are planning to release that article on Monday morning.

For the week commencing February 23d, there are quite some economic data coming out, as seen in the table below. No central bank announcement is planned. Our expectation is that the GDP data in the U.S. on Friday can cause some volatility in COMEX gold and silver, hence influence the gold and silver price. The German and U.K. GDP, German and U.S. inflation index CPI, etc should not result in signficant gold or silver price changes, unless those data would be very shocking.

gold_price_drivers_week_23_february_2015

 

 

Note: The primary focus of our website is to report on the different aspects of the gold market: fundamentals, economic and monetary analysis, basic technical analysis. Our view on the real price setting in the gold and silver market differs from the mainstream view. Price changes “happen to coincide” with events, and mainstream media got used to report some sort of relationship between the two. However, we believe that the real price setting is taking place in the COMEX futures market. Market expert Ted Butler does an outstanding job analyzing the weekly evolution in the COMEX market and how it affects price setting

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