Gold and silver ended the week with moderate gains and thus continued their January rally. Will this rally continue today? In the meantime, speculators continue to raise their bet on metals the most in recent months. There are still negotiations between holders of Greek bonds and Greece regarding a debt swap; this news will continue to occupy the news cycle. Today, the Bank of Japan will decide on its interest rate.
Gold rose on Friday by 0.57% and reached $1,664.0; silver also sharply increased by 3.82% and reached $31.68. The Euro/USD slipped on Friday by 0.29% to reach 1.2931.
U.S Existing Home Sales Increased in December
According to the recent report of the Realtors’ organisation, the annual rate of US existing home sales reached 4.61 million home sales in December a 5% gain (M-2-M); the December 2011 annual rate is also 3.6% above the 4.45 million annual home sales in December 2010.
On Today’s Agenda
Bank of Japan – Rate Decision: The Bank of Japan will announce its interest rate decision and monetary policy decisions. BOJ kept the interest rate unchanged at 0. If the Bank of Japan will introduce another stimulus plan, it could affect the direction of gold;
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About the Author: Lior Cohen, M.A in Economics, a commodities analyst and blogger at Trading NRG.