The prices of gold and silver started off the week on a positive note as both metals bounced back from last week’s tumble. But this rally might not last long with the FOMC meeting will reveal a change in its monetary policy that includes tapering QE3. The meeting starts today will end tomorrow with a press conference and statement. Until tomorrow, will gold and silver continue to rise? On today's agenda: German ZEW economic sentiment, GB CPI, Canada Manufacturing Sales, and U.S Core Consumer Price Index.
On Monday, gold rose by 0.72% to $1,317.80; Silver also increased by 1.35% to $21.97. During September, gold decreased by 5.59%; silver fell by 6.41%.
The gold and silver futures volumes of trade have fallen in recent days and reached on Monday 166 thousand and 46 thousand, respectively. If the volume picks up this week, this could suggest the chances of sudden sharp move in the prices of gold and silver due to high volume will rise.
On Today's Agenda
U.S Core CPI: This monthly report pertains to the main developments in the core consumer price index for August 2013. In July, the CPI inched up by 0.2% (month-over-month); the core CPI also edged up by 0.2%; the core index increased over the past twelve months by 1.7%.
German ZEW economic sentiment: The upcoming report will pertain to the ZEW indicator of economic sentiment for Germany for August. In July, the ZEW indicator for Germany bounced back to 42 points; if Germany’s economic sentiment keeps improving, the Euro will plausibly strengthen against other currencies including the US dollar;
Canada Manufacturing Sales (July 2013): This report refers to manufacturing sales in Canada as of July. It may affect the USD/CAD currencies pair, which is strongly linked with commodities. In the recent report regarding June 2013, manufacturing sales decreased by 0.5%;
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