The prices of gold and silver changed direction and started off the week on a positive note. The uncertainty around the U.S government shutdown and raising the debt ceiling is likely to keep affecting the volatility in the financial markets. Will gold and silver continue their rally today? On today’s agenda: German ZEW economic sentiment, GB CPI, and ECOFIN Summit.
On Monday, gold increased by 0.66% to $1,276.5; Silver also rose by 0.45% to $21.33. During October, gold decreased by 3.79%; silver, by 1.64%. The ratio between the two precious metals slightly rose on Monday to 59.85. During October, the ratio decreased by 2.19% as silver has slightly out-performed gold.
The gold and silver futures volumes of trade have declined and reached on Monday 112 thousand and 29 thousand, respectively. For both metals these trade volumes are still low compared to the volume traded in the previous months. If the volume changes direction and rise this week, it could suggest the odds of sudden sharp shift in the prices of gold and silver as a result of high volume will increase.
On Today's Agenda
GB CPI (September 2013): In the previous report referring to August 2013, the CPI slipped to an annual rate of 2.7%; if the inflation rate continues to decline, it may eventually affect the decision of BOE regarding its monetary policy;
German ZEW economic sentiment: The forthcoming report will refer to the ZEW indicator of economic sentiment for Germany for September. In August, the ZEW indicator for Germany rose to 49.6 points; if Germany’s economic sentiment continues to rise, the Euro will plausibly strengthen against other currencies including the US dollar;
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