Precious Metals Report

GOLD:
Gold prices fell after the ECB left rates at an all-time low, fueling the dollar against the euro. Prices recorded their second negative weekly close. Prices fell after the ECB cut its GDP forecast and inflation targets in response to falling commodity prices. Analysts expect an increase in unemployment and weak employment data.

OUTLOOK: The ECB believes that the dollar's appreciation against the euro is putting pressure on precious metal bullion prices, especially gold. Initial data supports prices at lower levels. Market participants will keep a close eye on the underlying data, as they will play a decisive role at the Fed meeting, where there is a lot of speculation about interest rates. Easing will be difficult for the Fed to file a rate hike that could be beneficial for gold prices.

SILVER:
Silver prices are still at odds with gold and ended with marginal gains. Market participants are cautious ahead of the Fed meeting scheduled for September 16-17, 2015, which could decide the rate of interest rates. Generally, higher interest rates have a negative impact on precious metal bullion prices. Silver for December delivery climbed to a high of $ 14.92 an ounce, but closed the session at $ 14.70 an ounce after accepting lows at $ 14.55 an ounce.

OUTLOOK: Silver prices are still at odds with gold and have made marginal gains. Markets will be scrutinized based on employment data. Prices are more likely to experience selling at higher levels as they were able to withstand gains as a result of the decline in gold prices, so the strategy for traders is to sell on the rise.