Gold and silver continue to seek direction as they have slightly slipped yesterday after they had moderately inclined on Tuesday. There is still no new development in regards to the European debt crisis, but once there will be, it could stir up the financial markets including the precious metals market. Morgan Stanley thinks that gold will thrive in 2012 due to the European debt crisis. Today, the Philly Fed Manufacturing Index will be published, a weekly update on the U.S. Unemployment Claims and the U.S. Housing Starts and building permits.
Gold slightly slipped on Wednesday by 0.44% to $1,774.3; silver also declined by 1.84% to $33.82. During November, gold inclined by 2.8%, while silver declined by 1.5%.
On Today’s Agenda
U.S. Housing Starts: the housing starts news was historically correlated with gold– as housing starts rose, gold tend to fall the following day (even when controlling to the USD effect); in the recent report, the adjusted annual rate of housing starts reached 658,000 in September, which is 15% above August’s rate of 572,000 (see here the recent review);
U.S. Unemployment Claims: initial claims decreased by 10,000 to 390,000 claims for the week ending on November 4th; the number of insured unemployment fell by 92k to 3.615 million during the week of October 29th; the upcoming report may affect commodities traders;
Philly Fed Manufacturing Index: This survey provides an indicator for the progress of the U.S economy. In the last survey, the index rose from -17.5 in September to +8.7 in October. This index, may affect during the day not only the USD but also gold (see here last report);
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.