The gold and silver market kicked off the week with a slow start as both precious metals prices slipped yesterday. This rally of the past couple of weeks may have reached a halt. The depreciation of the Euro and Japanese yen coincided with the decline of bullion prices. Yesterday, pending home sales report came out as the index declined 5.6% to 101.6 in September. This news, however, seems to have had little impact on the financial markets. Will gold and silver continue to fall this week? On today’s agenda: U.S. Consumer Confidence, Gfk German Consumer Climate Survey, U.S PPI and Retail Sales Report.
On Monday, gold inched down by 0.03% to $1,351.9; Silver also slipped by 0.48% to $22.50. During October, gold increased by 1.89%; silver rose by 3.77%. The ratio between the two precious metals slightly rose on Monday to 60.08. During October, the ratio decreased by 1.81% as silver has slightly out-performed gold.
On Monday, the Euro/ USD currency pair slid by 0.12% to 1.3785. During October, the Euro/USD rose by 2.20%. Moreover, other currencies such as the Japanese yen slightly depreciated yesterday against the U.S dollar by 0.27%. The correlations among gold, silver and Euro remained strong in recent weeks, e.g. the correlation between the Euro/USD and gold price is 0.59 during October.
On Today's Agenda
U.S. Retail Sales Report: This monthly report shows the developments in retail sales and food services for September; in the latest report regarding August, the retail sales edged up by 0.2% from the previous month;
U.S. PPI: In the last report regarding August, this index for finished goods slightly rose by 0.3% compared with July’s level and the core PPI remained unchanged; this news might affect the USD;
U.S Consumer Confidence: Based on the previous monthly report, for September, the consumer confidence index slipped to 79.7 (month-over-month). The current expectations are that the October index may further fall; this report might weaken the USD;
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