Gold and silver continued their upward trend of the past couple of weeks. Yesterday the ECB decided to keep interest rates unchanged which in turn may have helped keep the Euro strong against the US dollar. Today, Great Britain’s PPI Input report will be published, America’s trade balance report and Canada’s trade balance report.
Gold moderately rose on Thursday by 0.49% to $1,647.7; silver also inclined by 0.78% to reach $30.12. During January, gold rose by 5.2% and silver by 7.9%.
ECB Kept Interest Rate at 1.00%
As expected the European Central Bank kept the basic interest rate at 1.00% after ECB had cut the rate in twice in the last two rate decisions. President of ECB, Mario Draghi continues to call for structural reforms in EU countries.
This news may have been among the factors to trade up the Euro against the U.S. dollar and consequently keep major commodities prices rising.
U.S Retail Sales Slightly Rose in December
In December, the U.S. retail and food sales reached $400.6 billion, which is 0.1% above the sales in November and 6.5% above December 2010. This news shows that the U.S. economy continues to expand.
U.S. Initial Claims Rose Last Week
According to the recent weekly update on the U.S. initial jobless claims rose by 24,000 for the week ending on January 7th to 399,000 claims (seasonally adjusted data); the number of insured unemployment reached 3.628 million, an increase of 19,000 compared with the previous week’s figure. This news may have pressured down the USD against other currencies.
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