Gold and silver managed to bounce back on Friday after the sharp declines to these metals prices on Thursday. The U.S. debt talks will probably occupy the news cycle during the week with the Super-committee will try and propose budget cuts. Today, the U.S. existing home sales report will be published.
Gold slightly rose on Friday by 0.28% to $1,725.1; silver also inclined by 2.91% to $32.49. In the chart below, gold and silver had a rise and fall pattern during November.
Despite the differences in the trends of gold and silver during November, their correlation is still robust as seen in the chart below.
U.S. Super-committee’s and U.S. Debt Reduction Debate
The U.S. Super-committee will try to reach a resolution to cut at least $1.5 trillion from the Federal Budget over the next 10 years; if the Super-committee won’t be able to reach an agreement among its members, there will be a “trigger mechanism” that will enact a $1.2 trillion automatic budget cut of the budget over the next decade. The deadline is set to Wednesday, November 23rd; many already predict the Super-committee will fail. In any case, the talks over a budget cut to reduce the growing U.S. debt will take the centre stage during the week and could affect stocks and commodities traders.
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