Gold and silver ended the week falling as major currencies such as Euro and Australian dollar depreciated against the US dollar. The debate over the budget cuts in the U.S. will continue to occupy the news and may even affect the trading. Today the Euro Area Monetary Development report will be published and the U.S New Home Sales.
Gold slightly declined on Friday by 0.61% to $1,688.5; silver also sharply fell by 2.73% to $31.09.
U.S. Budget Cuts – the Debate Progress
Following the failure of U.S. Super-committee to reach an agreement on the Federal budget cuts, the next step is the “trigger mechanism” that will automatically cut $1.2 trillion from the U.S. budget over the next decade from across all the different sections in the budget including defence. The Republicans will try to block this “trigger mechanism”, but President Obama already stated he will veto any attempt to undo this “trigger mechanism” and will make sure that the $1.2 trillion will be reduced from the budget. This news will probably continue stirring up the financial markets and may influence stocks and commodities traders.
On Today’s Agenda
U.S. New Home Sales: in the previous report (September 2011), the sales of new homes fell by 5.7%; if this downward trend will continue, it may further indicate a slowdown in the U.S real estate market and may also affect gold and silver.
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