Events Impacting Gold And Silver In The Week Of March 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 March 16th and 20th, both gold and silver were consolidating during the first days of the week. Gold tested a couple of times the $1145 level and silver $15.45. However, those key support zones did hold, and both metals went sharply higher on the Fed announcement on Wednesday that they would not rise interest rates in the short run. After a small consolidation on Thursday, both metals went again meaningfully higher on Friday. In relative terms, silver has done much better during the rallies. Are these early signs that silver is about to outperform gold? We will need more confirmation before getting too excited, but the early signs are surely encouraging.

For the week commencing March 23d, some economic data are scheduled to be announced but there is no central bank decision planned, as seen in the table below. Mr. Draghi and Mr. Yellen will have each one a speech during the week, but they are not announcing a decision from the central bank. CPI in the U.S. and new home sales are scheduled on Tuesday; unless the CPI will be very surprising, these are not the type of economic data that are moving precious metals prices. However, the U.S. GDP data on Friday have the potential to create some volatility in markets and metals.




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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