Trading the News - Events Impacting Gold And Silver In The Week Of March 30th
Over the last week both gold and silver were higher before stabilizing on Friday. The Fed induced rally which started on Wednesday March 18th, was probably the “reason” for the optimism in the precious metals complex. We are very suspicious attributing “reasons” to a market development but let’s for now voice what most analysts and observers have been saying about this week’s rally. On Thursday, the metals peaked right at the time when the news came out that Saudi Arabia’s invaded Yemen. We did not notice any other major stories or developments in the precious metals market last week.
For the week commencing March 30th, quite some economic data are scheduled to be announced, as seen in the table below. There is no central bank announcement on the agenda. Tuesday is a busy day, with the European CPI and U.S. consumer confidence data being released, among many other data. 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.
The evolution of the geopolitical situation in the Middle East is expected in in the coming week. Obviously, there is a potential for increased demand of a “safe haven” asset if things would go wrong in the Middle East.
