Before the outcome of the FOMC Meeting Minutes, both gold and silver were showing some strength and trading up. The reason for the drop in bullion prices was due to the fact that the Fed decided there was no need for a further stimulus plan until the US Economy slows down. This had a negative affect on the two metals as they tend to drop when there is positive news for the U.S Dollar.
Overall for last week's trading, gold prices sharply fell by 2.5 percent whilst silver also saw a drop for the week of just under 2.4 percent.
Even though there was no commodity trading on Friday due to "Good Friday", the Labor department released disappointing figures for the month of March. The result was well below what was expected, as a result, gold and silver prices could show a slight correction to the recent falls. A strong Non-Farm Payroll report would have a positive affect on the U.S Dollar, potentially causing bullion prices to fall as a result.
The Euro also experienced sharp falls against the Greenback last week falling 1.8 percent whilst the Canadian dollar and the Australian dollar showed some resistance but in the end also showed slight drops versus the U.S dollar. The weakening of the "Aussie","Loonie" and the 17-nation currency could have assisted in the decline of both gold and silver prices last week. If the precious metals continue to fall, it could have a negative impact on the bullion market and could put downward pressure on bullion prices for the week ahead.
There are a number of reports due for release this week which could have an impact on commodity prices.
Coming up on the economic calendar this week is the U.S Consumer Price Index,American and Canadian Trade Balance,Bank of Japan's rate decision and monetary policy,U.S PPI and U.S jobless claims weekly.