Gold and silver changed direction and the concerns of the European debt crisis including the news from Italy and Greece (see below) may have caused the sharp fall for the Euro that may have also affected gold and silver to decline. Today, there are many items on the agenda including: the U.S. Federal Budget Balance report, the American and Canadian trade balance reports, the U.S. Unemployment Claims, the GB rate decision and Ben Bernanke will speak.
Gold moderately declined on Wednesday by 0.42% to $1,791.6; silver also declined by 2.25% to $34.36. During November, gold increased by 3.8% while silver remained virtually unchanged. The EUR/USD changed direction and sharply fell on Wednesday by 2.11% to reach 1.3542. The news from Italy and Greece seems to continue raising the uncertainty levels and thus may have affected the Euro and could consequently also pressure gold and silver to trade down as the USD will appreciate.
The European Debt Update November 10th
The recent news from Italy is that Silvio Berlusconi will step down from his position as Italy’s Prime Minster by Saturday. The debt crisis in Italy was probably the prime reason for the sharp falls yesterday in the European stock markets and the sharp depreciation of the Euro.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.