Gold and silver sharply rose yesterday and recorded the sharpest gains during October. Does this mean there is a shift in the recent trend of gold and silver from downward to upward? Today, the second (this week) EU summit will be held in Brussels; in the summit there will an attempt to resolve the European debt crisis. The U.S Core Durable Goods report will be published today; U.S. New Home Sales report; and BOJ’s Rate will be announced.
Gold sharply rose on Tuesday by 2.91% to $1,700.4; silver also sharply inclined by 4.45% to $33.05. The Euro/USD slightly declined on Tuesday by 0.16% to reach 1.3908.
On Today’s Agenda:
U.S Core Durable Goods: This report will present the changes in orders of durable goods in the U.S. in the manufacturing sector in September. During August 2011, manufactured durable goods fell by $0.2 billion to $201.8 billion;
U.S. New Home Sales: in the recent report (August 2011), the sales of new homes reached an annual rate of 295,000 – a drop of 2.3%; if this downward trend will continue, it may only further indicate a slowdown in the U.S real estate market;
Euro Summit – Round Two Today
Today, the second of two EU summit will be held (the first one was held back on Sunday). This will be the 14th EU crisis meeting in the past 21 months and will include representatives from all 27 European Union countries.
There are still crucial issues left open including how to boost the EFSF, reducing Greece’s debt burden and recapitalizing European commercial banks.
For further reading: Weekly Outlook for October 24-28
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.