Gold and silver bounced back on Friday after they had recorded falls in the previous two days. There are new developments from Europe that may affect the bullion market and Japan’s GDP grew in the third quarter by 1.5%. Today, the statement of the recent Bank of Australia’s Monetary Policy Meeting will become available.
Gold sharply inclined on Friday by 1.69% to $1,788.1; silver also inclined by 1.69% to $34.68. The chart below presents the development of gold and silver in recent month (normalized gold and silver prices to October 31st 2011). During November, gold increased by 3.6%, and silver slightly rose by 1.0%. Despite the differences in the development of gold and silver throughout the month, there is still a strong correlation between them.
The Euro/USD continued to rally and sharply inclined on Friday by 1.06% to reach 1.375. The rally in Euro coincides with the increase in gold and silver. The ongoing developments in Europe will probably continue influencing the Forex markets and consequently may also affect gold and silver.
For further reading:
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.