Gold and silver changed direction and slightly slipped on the first day of the week. There are many news items on the agenda today including Great Britain CPI, Euro Area GDP for the third quarter, U.S. Retail Sales, U.S. PPI and Bank of Japan Rate Decision. Currently gold and silver prices are traded slightly down.
Gold slightly declined on Monday by 0.54% to $1,778.4; silver also declined by 1.90% to $34.02. The chart below presents the development of gold and silver in recent month:
Goldman Lowers Forecast on Commodities Prices
According to Bloomberg, Goldman Sachs reduced its one year projections on major commodities prices; Goldman’s current prediction for silver is $32.2 within a year and gold will be $1,930.
On Today’s Agenda
U.S. Retail Sales: this report will present the changes in the retail sales for October; in September, the retail sales slightly rose by 1.1% (see here my review of the recent report).
Euro Area GDP 3Q2011: This report will show the changes in the economic growth in Euro Area; in Q2 2011, the Euro Area GDP grew by only 0.2% (Q-2-Q). This news might affect the Euro; there are early expectations of a low growth rate in the third quarter (see here recent report);
U.S. Producer Price Index: This monthly report will show the progress in the PPI during October, i.e. the inflation rate from producers’ stand point. In the recent report regarding September, this index for finished goods rose by 0.8%; this news could have an effect on gold and silver;
For further reading:
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.