Gold And Silver Fundamentals: a quiet week before the European Central Bank will announce their interest rate decision during a press conference

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.

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.