The prices gold and silver kicked off the month on a negative note as both precious metals tumbled down. This recent fall may have been related to the expiry of future contracts as more investors have exited the bullion market. The ongoing debacle in the U.S surrounding the budget continues to keep the US dollar weak but has yet to reflect in a rally for gold and silver. Further, the potential future drop in gold imports in India may loosen the gold market in the near future. Will gold and silver bounce back from their recent tumble? On today’s agenda: Bernanke's Speech, ECB Rate Decision, Australian Trade Balance, GB Construction PMI, Spain's unemployment Change, ADP estimate of U.S. non-farm payroll.
On Tuesday, gold tumbled down by 3.08% to $1,285.9; Silver also plummeted by 2.46% to $21.15. During the week, gold decreased by 3.92%; silver, by 2.90%. In the chart below are the normalized rates of bullion for 2013 (normalized to 100 as of August 30th). The prices of gold and silver have tumbled down in recent weeks.
On Today's Agenda
ECB Rate Decision: ECB will announce of any developments in its monetary policy and economic outlook as of October. The current expectations are that ECB will leave its interest rate unchanged at 0.5%. ECB President Draghi will also refer to ECB’s forward looking analysis. If Draghi changes his tone from last month’s meeting, this press conference could stir up the forex market;
ADP estimate of U.S. non-farm payroll: ADP will publish its estimate for the next U.S non-farm payroll changes for September 2013 that will come out on Friday;
Bernanke's Speech: Chairman of the Federal Reserve Ben Bernanke will give brief welcoming remarks at the Federal Reserve/Conference of State Bank Supervisors Community. If Bernanke were to refer to the Fed’s policy or the market’s reaction to the September FOMC meeting, this speech may stir up the financial markets;
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