Thursday 7 April 2011

Gold & Silver Prices Outlook –6 April


April 6, 2011
By Lior
Let’s examine the news and events that might affect current gold and silver prices as of April 6th:
China raised its interest rate
Bank of China raise its basic interest rate by 25 basis points to 6.31%. This is the second interest rate raise this year. This decision was taken to slow down China’s growing inflation, which as of February 2011 reached 4.9% annual rate.
China is the second largest consumer of gold after India: according to the Gold council recent report pertaining fourth quarter 2010, China’s jewellery demand reached a new annual record of 400 tons, and its annual demand for bars and coins totaled 179.9 tons – an increase of 70% (Y-2-Y).
The recent rise in interest rate might adversely affect its demand for precious metals, such as gold and silver. If it will have such an affect, it will be felt in the upcoming months.

Turmoil in Middle East – update
The fights between the rebels and Gaddafi’s army progresses and even with NATO’s intervention the fights don’t subside.
This turmoil raises the instability in the Middle East and adversely affects the market of commodities and precious metals.
See here for more news and updates about the turmoil in the Middle East and its affect on commodities’ markets.

Gold and silver prices April 2011
The month of April started off with rises for gold and silver prices. During March silver prices rose by over 10% while gold prices didn’t do much.
In the chart below are the changes of gold prices during 2011; the chart shows that gold pricesbounced back from its decline during January.

Gold prices April 6 2011
The gold to silver ratio: as of yesterday, April 5th the ratio between gold and silver pricesdeclined to 37.07 – the lowest level this month so far.
As seen in the graph below, the ratio of gold to silver prices continue to drop as silver pricesincrease by a higher rate than gold prices do



http://www.tradingnrg.com/gold-prices-forecast-silver-prices-outlook-april-6/

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