Events Impacting Gold And Silver In The Week Of February 9th

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 2nd and 6th, both gold and silver moved considerably lower especially on Friday. Gold was still trading close to $1290 on Monday and Tuesday, held up above $1260 on Wednesday and Thursday, but then came the (much) better than expected unemployment report in the U.S. on Friday. In a matter of minutes, gold fell from $1268 to $1230, a decline of 3%. Gold is meantime lower in all currencies, especially after the decline of last week.

The precious metals are vulerable lately. That is, in our opinion, not because of economic data, but because of futures positions in the COMEX market. As we have shown a week ago in Gold Gets Safe Haven Bids But COMEX Has Stopping Power, commercials have accumulated short positions at an astonishing rate. That is the real reason why gold’s rally is “capped.”

For the week commencing February 9th, there is a very limited number of economic data coming out. No central bank announcements are planned. If gold and silver will be moving, it will not be because of economic or monetary data. As the table below indicates, retail sales will be released in the U.S. on Thursday, while Germany will publish their GDP growth on Friday.

gold_price_drivers_week_9_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 or announcements; mainstream media are used to report a relationship between both. However, we believe that the real price setting for the time being 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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