Events Impacting The Gold And Silver Price In The Week Of October 27th

In this article, we summarize the key events of the running week that could have an impact on the price of gold and silver price because of trading in COMEX futures.

Over the last week, between October 20th and 25th, both gold and silver remained somehow stable. There was no specific event driven price change.

Gold and silver are still moving at a key juncture. Silver has broken long time support and seems to be moving to the resistance line (see more in Michael Noonan’s latest chart analysis). Gold, on the other hand, is still above critical support but is not yet moving any sign of significant demand. Gold bulls should be able not to let prices go lower from here, at least not on a sustained basis, to avoid a break through critical support. One negative for the precious metals complex is that gold stocks have been sold off heavily during the week. As miners are mostly leading the metals, this is not a sign of health in the sector. On the other hand, gold is increasingly behaving as a safe haven in a world which is becoming more and more uncertain.

For the week commencing October 27th, there are some key economic data coming mainly from the U.S. and European Union. There are no formal Central Bank statements expected. Mainly the data on Thursday and Friday have the potential to cause some moves in the markets and metals, although our expectation is that such moves will not be aggressive.

Below is a more detailed calendar of key economic data in key markets. They are not necessarily driving gold and silver prices, but could cause price volatility:

gold_price_drivers_week_27_october_2014

 

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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