Gold And Silver Price: A Quiet Week But Watch Draghi’s Speech

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.

The past week was quite “boring” in the precious metals complex. Gold and silver traded lower during the week befor recovering on Friday. The miners, obviously, followed a similar path. There was no significant move when the minutes of the FOMC meeting of February 25th and 26h were published on Wednesday. That is not in line with the price reaction of the metals when Mrs. Yellen announced that she would not hike interest rates on February 25th and 26h, which was followed by a strong rally in precious metals. Counterintuitive?

For the week commencing April 13th, there are quite some economic data and central bank announcements scheduled, as seen in the table below. Tuesday is a busy day with economic data out of the US and China, but they are not very likely to move metals and markets (unless some of the data would be shocking). On Wednesday, the European Central Bank will announce their interest rate decision during a press conference. It seems impossible that the ECB will hike interest rates; the most likely scenario is a status quo, there is a small probability that they will lower interest rates. However, President Draghi could have some drivers in his speech which could create short term volatility in markets and metals. On Friday, the latest CPI figures will be released both in the US and Europe. There is a small chance that the CPI will be significantly higher or lower than the previous months.

gold_price_drivers_week_13_april_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, 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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