Events Impacting Gold And Silver In The Week Of March 30th

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 23d and 27th, both gold and silver were consistently higher before stabilizing on Friday. The Fed induced rally, which started on Wednesday March 18th, was probably the “reason” for the optimism in the precious metals complex. As a sidenote, mind that we are very suspicious attributing “reasons” to a market development … but let’s for now voice what most analysts and observers have been saying about this week’s rally. On Thursday, the metals peaked right at the time when the news came out that Saudi Arabia’s invaded Yemen. We did not notice any other major stories or developments in the precious metals market last week.

For the week commencing March 30th, quite some economic data are scheduled to be announced, as seen in the table below. There is no central bank announcement on the agenda. Tuesday is a busy day, with the European CPI and U.S. consumer confidence data being released, among many other data. We believe the nonfarm payrolls and unemployment rate in the U.S. on Friday have the potential to create some volatility in markets and metals, but at the same time, as it will be Good Friday, we expect a neutral reaction.

The “joker” in the coming week(s) is the evolution of the geopolitical situation in the Middle East. Obviously, there is a potential for increased demand of a “safe haven” asset if things would go wrong in the Middle East.



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

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing