Gold and silver continued to rise yesterday and thus completed a fourth business day rally. The European Union leaders reached an agreement on the debt crisis that could ease the concerns of the financial community and thus curb the recent rally in gold and silver. Today, U.S Q3 2011 GDP growth rate will be published; Euro Area Monetary Developments report, U.S. Unemployment Claim and U.S. pending Home Sales.
Gold inclined on Wednesday by 1.36% to $1,723.5; silver also rose by 0.78% to $33.31. These are the highest price levels these metals have reached during October.
Euro Summit –Cutting the Greek and Debt and Boost EFSF
The EU Summit ended yesterday with several key resolutions including: cutting the Greek debt by 50%; boosting the EFSF (the European rescue fund) from 440 billion euros to 1 trillion euros. This boost should reduce the pressure in the financial community and ease the concerns revolving the EU crisis.
This news might boost the EU financial markets, ease some of the concerns of commodities and Forex traders and thus curb the recent rally in gold and silver.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.