Both gold and silver were consolidating
during the first days of the week. Gold tested a couple of times
the $1145 level and silver $15.45. However, those key support zones did
hold, and both metals went sharply higher on the Fed announcement on
Wednesday that they would not rise interest rates in the short
run. After a small consolidation on Thursday, both metals went again
meaningfully higher on Friday. In relative terms, silver has done much
better during the rallies. Are these early signs that silver is about to
outperform gold? We will need more confirmation before getting too
excited, but the early signs are surely encouraging.
For the week commencing March 23d, some economic data are scheduled to be announced but there is no central bank decision
planned, as seen in the table below. Mr. Draghi and Mr. Yellen will
have each one a speech during the week, but they are not announcing a
decision from the central bank. CPI in the U.S. and new home sales are
scheduled on Tuesday; unless the CPI will be very surprising, these are
not the type of economic data that are moving precious metals prices.
However, the U.S. GDP data on Friday have the potential to create some
volatility in markets and metals.