Gold ended Friday on a weaker note following a speech by Fed Chair Janet Yellen in which she noted that the Fed should not wait until the 2% inflation target is met, hinting that US interest rates might rise sooner than many expect. This saw the dollar strengthen and precious metal prices fall. Gold however still managed to put together another week of gains, it has gained positive momentum since the FOMC meeting two weeks ago.

Easter later this week is expected to see trading volumes soften the closer we get towards the end of the week. Some financial markets will be closed or close early on Friday making it a short week, however spot gold, silver and currency pairs will be trading.

The key data due out this week is the US Non-Farm Payroll data due out on Good Friday (3rd April) which could provide volatility given market volumes are expected to be thin and the range of markets open to be limited. Given this I would not be surprised if a lot of traders go flat into the long weekend as they look to reduce their market exposure ahead of the release of the Non-Farms. Traders would not want to be caught on the wrong side of a trade.

Other important data and events of the week include; Euro inflation data out Tuesday, ADP Employment Report and Chicago PMI due Wednesday, US ISM Manufacturing PMI , Jobless Claims on Thursday and then all the key data due out with the Non-Farm Payrolls on Friday such as the Unemployment Rate, Average Weekly Hours and Average Hourly Earnings. The Fed has mentioned its view on monetary policy is very much data driven so expect data out this week to be heavily scrutinized, especially Friday’s Non-Farms.

Also added into the mix this week is that up to 10 Fed officials are due to speak at various times and functions, with Janet Yellen speaking on Thursday.

On Friday silver finished the week at US$16.97oz, up US$0.24oz on the week, while gold closed at US$1,198.40oz, up US$16.00 on the week, following a rise of US$23.40oz the previous week.

Courtesy of: www.BullionIndex.com.au

Harley Salt is co-founder of www.BullionIndex.com.au a physical gold, silver and platinum trading and investing company located in Melbourne, Australia.

Bullion Index offers direct market access to 15 global physical bullion exchanges and storage facilities in key locations including London, Zurich, New York, Hong Kong, Singapore, Dubai and Sydney. Their clients from across the globe can trade bullion bars and investment grade coins simply and securely via the MetalDesk online trading platform.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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