Guest Commentary: Gold & Silver Prices Daily Outlook 10.21.2011
Gold and silver sharply fell yesterday and thus gold price completed four days of falls. Currently gold and silver are traded up. Today, there will be an ECB Press Conference in which Trichet will speak; the German Business Climate Survey will be published, and the Canadian Core CPI.
Gold sharply declined on Thursday by 2.07% to $1,612.9; silver also sharply fell by 3.18% to $30.28. During October, gold declined by 0.6%, and silver by 0.7%.
The ratio between gold and silver slightly inclined on Thursday, October 20th to 53.26. During October, silver inclined by a slightly larger rate than gold as the ratio slipped by 1.2%.
On Today's Agenda:
ECB Press Conference Trichet Speaks: Jean Claude Trichet, President of the European Central Bank, will talk about the challenges of European leaders in resolving the debt crisis;
German Business Climate Survey: This survey estimates the changes in the business climate in Germany on a monthly basis. In the last report for September, the business climate index declined again; this survey may affect commodities traders;
U.S Existing Home Sales Declined in September
Yesterday we were informed that the annual rate of U.S existing home sales declined by 3% in September as the seasonally adjusted annual rate reached 4.91 million home sales in September.
Philly Fed Showed Improvement in October
The Philly Fed Manufacturing Index inclined from -17.5 in September to +8.7 in October. The new orders index also gained 19 points and returned to positive territory.
This news may have pushed gold and silver down as the signs of recovery eased some of the uncertainty in the financial markets regarding the progress of the U.S. economy.
USD / Gold & Silver– October
The AUD/USD slightly inclined on Thursday by 0.49% to reach 1.0155; other currencies also were traded up against the USD including CAD, CHF and Euro. If the "risk currencies" (AUD, Euro and CAD) will rise today, they might curb the recent falls in gold and silver.
Gold and Silver Outlook:
Gold and silver sharply fell yesterday; gold declined all through the week even though it was traded up in the first couple of weeks of October. The recent improvement in the Philly Fed may have helped to push gold and silver down while moderately gaining back of the losses in the American stock markets in recent days. But the speculation around the European debt crisis will continue to be the eight hundred pound gorilla affecting the financial markets including precious metals.
For further reading:Gold and Silver Prices Monthly Outlook for October 2011
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.
By: Lior Cohen, Energy Analyst for Trading NRG
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