Following the sharp gains recorded on the first business day of 2012 for both gold and silver, gold continued to rise while silver changed direction and moderately declined. The Euro also depreciated against the US dollar. France plans to sell today as much as €8 billion worth of debt. If this debt sale won’t go well, it could also have an adverse effect of the Euro. Today, the Euro Area Industrial New Orders report will be published, ADP’s estimate of U.S. non-farm employment, U.S. ISM Non-Manufacturing PMI and U.S. Unemployment Claims report.
Gold rose on Wednesday by 0.76% to $1,612.7; silver on the other hand declined by 1.61% to reach $29.10. In the chart below are the normalized gold and silver during recent weeks (normalized gold and silver to December 14th 2011).
Euro Area Inflation Declined to 2.8% December
According to the recent Eurostat report the Euro Area inflation rate slightly slipped by 0.2 per cent points to reach an annual inflation rate of 3% in December 2011.
This decline comes despite the recent cuts in the ECB’s interest rates. The Euro is currently traded down. The Employment in the EU is also down by 0.1% during the third quarter of 2011. These reports may have been among the factors to adversely affect the Euro yesterday, as these reports suggest that the economic progress of the EU is slowing down, and thus this news may have curbed the recent rally of bullion prices.
On Today’s Agenda
U.S. Unemployment Claims: initial claims rose by 15,000 to 381,000 claims for the week ending on December 24th; the number of insured unemployment inclined by 34k to 3.601 million during the week of December 17th;
U.S. ISM Non-Manufacturing PMI: This report will show the development of non-manufacturing sector during December 2011. During November this index slightly fell to 52%; this index might affect Forex and commodities traders (see here last report).
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