Submitted by
Trading
NRG
as part of our
contributors program
.
The
prices silver and gold
didn't do much yesterday again even though there were sharp falls
in other commodities markets most notably the drop in oil prices.
Housing starts rose by 2.3% in August while building permits
declined. Existing home sales also increased last month. This news
may have had a modest effect on the commodities markets. According
to the recent HSBC's flash manufacturing PMI of China declined to
47.8 which mean the manufacturing sector is contracting at a faster
pace in China. This new may adversely affect commodities rates
during the day. On today's agenda: Philly Fed Manufacturing PMI
reports, Philly Fed Manufacturing survey, ECB President Speech, GB
Retails Sales, Spanish 10 Year Bond Auction, U.S. Jobless Claims
update, FOMC member Lockhart's Speech.
On Wednesday, Gold edged up again by 0.03% to $1,771.7; Silver
on the other hand decreased by 0.37% to $34.59. During the month,
gold increased by 4.98%; silver, by 10.01%.
On Today's Agenda
Philly Fed Manufacturing Index: In the previous August survey,
the growth rate increased from -12.9 in July to -7.1 in August. If
the index will remain negative it may adversely affect not only U.S
Dollar but also American stock indexes, and commodities rates (the
recent Philly Fed review);
ECB President Speech: Mario Draghi is likely to refer to the
recent German Court ruling, and he may also refer to the future
monetary steps the ECB will take in order to jump start the EU
economy and lower the borrowing costs of the struggling EU
economies such as Spain and Italy;
U.S. Jobless Claims Weekly Report: in the recent report the
jobless claims rose by 15k to 382,000; this upcoming weekly report
may affect the USD;
Flash German and Euro Area Manufacturing PMI: In the previous
report regarding August, the German PMI rose to 45.1 i.e. the
manufacturing conditions are still contracting but at a slightly
slower pace. This report will provide an indicator to the economic
progress of the Euro zone and the leading economies' manufacturing
conditions; this news, in turn, might affect the Euro and
consequently bullion;
Currencies / Bullion Market - September Update
The Euro/USD remained unchanged on Wednesday at 1.3048. Several
other currencies including AUD appreciated against the USD. As seen
in the chart below linear correlation among gold, CAD, AUD, and
Euro are still mid-strong: during the month, the correlation
between gold and EURO/USD was 0.6 (daily percent changes); the
correlation between gold and Canadian dollar, -0.72; the
correlation between gold and Aussie dollar, 0.63. If the Euro, CAD
and AUD will trade down, this could also pull down along with it
the prices of bullion.
For further reading:
Gold and Silver | Outlook September 17-21
Gold and Silver Report for September