The gold and silver market has cooled down from last week’s high volatility, following last week’s FOMC’s no-tapering decision. On Monday, gold and silver slightly declined. Their decline coincided with the downfall of other commodities such as crude oil. In the forex market, leading risk related currencies such as the Euro and Aussie dollar depreciated against the USD. Will gold and silver continue to fall today? On today's agenda: German Ifo Business Climate Index, Canada Retails Sales, and U.S Consumer Confidence.
On Monday, gold slipped by 0.42% to $1,327; Silver also decreased by 0.32% to $21.81. During September, gold decreased by 4.93%; silver fell by 7.09%. 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 mostly declined in the past several weeks.
On Today's Agenda
U.S Consumer Confidence: Based on the latest monthly report, for August, the consumer confidence index bounced back and rose to 81.5 (month-over-month). The current expectations are that the September index may keep rising; this report might affect precious metals prices;
German Ifo Business Climate Index:This index comprises the shifts (on a monthly basis) of manufacturers, builders, wholesalers, and retailers inGermany as of September. In the previous report regarding August 2013, the business climate index rose from 106.2 in July to 107.5 in August; if this trend persists, it might positively affect the Euro;
For further reading: