Submitted by
Trading
NRG
as part of our
contributors program
.
The
prices of gold and silver
were traded down again for the second consecutive business day.
Other commodities prices, such as oil, and the Euro/USD also
declined on the first day of the week. On the other hand, several
"risk currencies" such as the Canadian dollar and Aussie dollar
traded up against the USD. In Europe, there are mixed messages
regarding Spain's bailout. Until this issue will be resolved, I
suspect the uncertainty around the Euro will remain high. According
to the IMF the world economy will grow by only 3.3% in 2012 - the
slowest growth rate since 2009. The IMF revised down its projection
from 3.5%. This news may pull down commodities prices. Merkel will
visitAthens today; perhaps following this visit some light will be
shed onGermany's position vis-à-vis the Greek debt crisis and
possible delay in payments. Today, ECB President Speaks andGreat
Britain Manufacturing Production.
On Today's Agenda
ECB President Speaks: Mario Draghi will talk in Committee on
Economic and Monetary Affairs of the European Parliament, in
Brussels. In his speech he might refer to the future monetary steps
the ECB. This speech might affect the Euro;
Great Britain Manufacturing Production: this report will present
the yearly rate of GB's manufacturing production for August; in the
last report regarding July the index rose by 3.2% (M-2-M); this
news may affect the British Pound;
Currencies / Bullion Market - October Update
The Euro/ USD also declined on Monday by 0.55% to 1.2968. On
the other hand, several currencies including AUD appreciated last
week against the USD by 0.04%. The correlation between gold and
Euro remains mid-strong and positive: during September-October,
the linear correlation between the gold and EURO/USD reached
0.623 (daily percent changes); the linear correlation between the
gold and AUD/USD was 0.69 (daily percent changes). Following
yesterday's mixed trend in the forex markets in which the Euro
depreciated while the Aussie dollar and CAD appreciated against
the USD, this could contributed to the unclear trend of precious
metals prices. Nonetheless, if the Euro and other risk currencies
will rally, they are likely to also pull up gold and silver.
For further reading:
Gold And Silver | Weekly Outlook October 8-12
Gold and Silver Monthly Report for October