Events Impacting Gold And Silver In The Week Of March 2nd

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 23d and 27th, both gold and silver started the week lower. Gold tested twice the $1190 level and silver $16.10. However, those key support zones did hold, and both metals went higher during the second half of the week. Gold touched twice $1220.00 before closing the week at $1213.70. The week’s high for silver was at $16.90 while it closed at $16.62. These up moves are remarkable given the very strong price action of the U.S. Dollar on Thursday. Is this a trend change or simply a technical bounce for the metals?

For the week commencing March 2nd, there are some important economic data and central bank announcements, as seen in the table below. The interest rate decision of the European central bank on Thursday is undoubtedly the key announcement this week. Friday is an important day because of the unemployment report and nonfarm payrolls for the month of February in the U.S. Our expectation is that the events on Thursday and Friday have the potential to create volatility in COMEX gold and silver, hence influence the gold and silver price. The PMI report in the U.S. and Europe, CPI in Europe, and Yellen’s speech at Citizens Budget Commission’s Annual Awards Dinner are not likely to cause volatility in the metals market.



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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