Gold And Silver Price: Expect Volatility On Wednesday April 9th

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 standout event from last week was the sharp increase in precious metals prices on Friday. As most markets were closed because of Easter, the increase was only visible on the charts when markets reopened this morning (COMEX futures, London LBMA, etc). We said last week “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.” Indeed, our call was very sharp.

For the week commencing April 6th, there are almost no economic data scheduled to be announced, as seen in the table below. On Wednesday, however, there are some central bank announcements on the agenda. The Japanese central bank is planned to give a press conference, and the FOMC minutes of the meeting on February 25th and 26h will be published. That is a recipe for potential volatility in almost all markets. On Thursday, there is a CPI update in China, but that should not really impact precious metals, unless China would announce a dramatic disinflationary trend.

We expect Wednesday to be potenially very volatile.

 

gold_price_drivers_week_6_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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