Gold and silver sharply declined on the first day of November; this movement was probably driven in part by the news from Greece of a referendum. Today the FOMC will release a statement and Bernanke will also give a speech. Today, the ADP of U.S. employment estimate will be published and Australian Retail Trade report.
Gold declined on Tuesday by 0.78% to $1,711.8; silver also sharply fell by 4.72% to $32.73. The chart below shows the changes in gold and silver since October 20th. During the week (so far), gold decreased by 2.0% and silver by 7.2%. The Euro/USD sharply declined on Tuesday by 1.12% to reach 1.3703 – the lowest level since January 12th.
Following last week’s EU agreement on a reduction on the Greek debt, yesterday it was announced that Papandreou, Prime Minister of Greece, has put the European Union’s debt plan to a referendum. This move puts the recent EU agreement on debt reduction for Greece at risk if it won’t pass by the Greek voters (see here for more on this subject).
On Today’s Agenda:
ADP Estimate of U.S. Change Employment: ADP will give an estimate in the U.S employment for October;
FOMC Meeting (Statement): in the recent FOMC meeting the Federal Open Market Committee came up with its plan to purchase $400 billion worth of LT securities. The FOMC may consider additional steps even though there was a rally in the U.S stock markets during October. Following the FOMC meeting the Chairman of he Federal Reserve, Ben Bernanke, will talk about the recent FOMC meeting and may provide headlines that could affect the financial markets;
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.