The prices gold and silver moved in an unclear trend in the past week. This indecisiveness in the markets might be stemmed by the uncertainty regarding the FOMC’s next step and U.S policymakers’ inability to reach an agreement on budget and raising the debt ceiling. The recent news is that The House and the Senate weren’t able to decide on the budget so that the U.S government is closed. This news, however, has yet to cause waves in the financial markets. Perhaps the debate over raising the debt ceiling will do just that. This uncertainty is likely to benefit, to a certain degree, precious metals prices. The latest decision of RBA to maintain its cash rate unchanged at 2.5% is currently pulling up the Aussie. This trend may also help pull up gold and silver prices that tend to be correlated to this currency. In other news, on today’s agenda: U.S, GB, and China Manufacturing PMI, Australian Retail Sales, and EU Unemployment Rate.
On Monday, gold fell again by 0.87% to $1,326.8; Silver also decreased by 0.45% to $21.68. During September, gold decreased by 4.94%; silver, by 7.64%.
On Today's Agenda
U.S. Manufacturing PMI: This report will pertain to September 2013. In August, the index slightly increased to 55.7%; this means the manufacturing is growing at a slightly faster rate;
China Manufacturing PMI: As of August, the Manufacturing PMI rose for third consecutive month to 51 – i.e. China's manufacturing sectors are expanding at a slightly faster rate; in the previous flash PMI report, the index rose to 20.3. If in the upcoming report the PMI continues to pull up, it could signal growth in China’s manufacturing sectors, which could also positively affect precious metals prices;
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