Gold and Silver Prices Outlook for May 2012
The bullion market has slowed down during the past three months:
during February gold declined by 1.67%, during March by 2.3% and during April by
0.42%. Silver hasn’t done any better. The recent FOMC meeting didn’t affect Precious Metals at the end
of April. Since the Fed didn’t introduce additional monetary steps
to jump-start the U.S economy and the situation in the Euro Zone hasn’t improved
the precious metals prices much like the Euro/USD
haven’t moved much during the month. Will this
stalemate in the precious metals market continue in
May?
Let’s examine the precious metals market for April and provide a short outlook for gold and silver for May 2012.
Gold and Silver April 2012
Gold and silver prices decreased during most of April, even though for several parts of the month there was an unclear trend for both metals as they have zigzagged from gains to losses.
Gold (as of April 27th) declined by 0.42%; silver, even more than gold, dropped by 3.3%.
Let’s divide April into two parts: the table below divides the month to two with the breaking point at April 12th; I divide the month on April 12th because that was after the effects of the U.S employment report and U.S jobless claims came into play; during the first part of April, gold edged up by 0.5% and silver price by 0.1%. During the second part of April, silver declined by 3.4% and gold price by 0.9%.
During the first part of April, the U.S dollar depreciated against the Canadian dollar and Australian dollar, but appreciated against the Euro; the first two currencies are usually strongly correlated with gold and silver prices. During the second part of the month, the U.S dollar depreciated against not only the Aussie dollar and Canadian dollar but also the Euro; this shift might have adversely affected gold and silver prices during the second part of the month.
Let’s examine the precious metals market for April and provide a short outlook for gold and silver for May 2012.
Gold and Silver April 2012
Gold and silver prices decreased during most of April, even though for several parts of the month there was an unclear trend for both metals as they have zigzagged from gains to losses.
Gold (as of April 27th) declined by 0.42%; silver, even more than gold, dropped by 3.3%.
Let’s divide April into two parts: the table below divides the month to two with the breaking point at April 12th; I divide the month on April 12th because that was after the effects of the U.S employment report and U.S jobless claims came into play; during the first part of April, gold edged up by 0.5% and silver price by 0.1%. During the second part of April, silver declined by 3.4% and gold price by 0.9%.
During the first part of April, the U.S dollar depreciated against the Canadian dollar and Australian dollar, but appreciated against the Euro; the first two currencies are usually strongly correlated with gold and silver prices. During the second part of the month, the U.S dollar depreciated against not only the Aussie dollar and Canadian dollar but also the Euro; this shift might have adversely affected gold and silver prices during the second part of the month.
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