The prices of gold and silver changed direction and slipped on the first day of the week after they had spiked during the previous week. The recent fall in the prices of gold and silver coincided with the decline of other commodities such as oil. Looking forward, the upcoming publication of the minutes of the latest FOMC meeting might stir up the bullion market. Until then, precious metals prices might not move much. On today's agenda: Minutes of Reserve Bank of Australia's Monetary Policy Meeting and German PPI.
On Monday, gold declined by 0.41% to $1,365.60; Silver also slipped by 0.67% to $23.17. During August, gold rose by 4.48%; silver jumped by 18.82%.
The gold and silver futures volumes of trade have declined and reached on Monday 135 thousand and 59 thousand, respectively – the lowest level in the past several days. If the volume will pick up this week, this could suggest the odds of sudden sharp movement in the prices of gold and silver due to high volume will rise.
On Today's Agenda
Minutes of Reserve Bank of Australia's Monetary Policy Meeting: The Reserve Bank of Australia lowered its interest rate by 0.25pp to 2.50%; the minutes of the recent monetary policy meeting may offer some additional information behind its latest decision; this news may affect the Australian dollar and consequently bullion prices;
German PPI: According to the recent report for June, the PPI remained unchanged. This report might affect the direction of the Euro, which is also correlated with precious metals rates;
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