Gold and silver continue to rise along with the rest of the other commodities including oil. The Australian dollar appreciated against the US dollar. This rally in the Forex market may have also helped push up gold and silver. There are reports of rising imports of gold from Hong Kong to China; this news may also partially explain the recent rally in gold. On the other hand, Fitch’s concerns of the European debt crisis spreading may be among the factors currently pulling down the Euro and consensually curbing gold’s rally. Today, China’s consumer price index will be published and Great Britain’s trade balance report. .
Gold sharply inclined on Tuesday by 1.46% to $1,631.5; silver also sharply rose by 3.59% to reach $29.82. In the chart below are the normalized gold and silver (gold and silver are normalized to December 30th). During January, gold rose by 4.1% and silver by 6.8%.
Forex / Gold & Silver– January
The Euro/USD slightly rose on Tuesday by 0.10% to reach 1.2778; furthermore, in yesterday’s trading the AUD strongly appreciated against the USD. The chart below shows the development of the linear correlation of gold and silver with AUD/USD daily per cent changes. It shows that in the past few months the relation between AUD and bullion prices has tighten; thus if the AUD and will change direction and depreciate against the USD, it may also curb the recent rally of gold and silver. Currently, the Euro and AUD are traded down.
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