Gold and silver started the week with very sharp falls along with the rest of markets including other commodities and exchange rates. The U.S. budget reduction talks will likely to continue affecting bullion traders during the week. Today, the U.S. second estimate of the Q3 GDP report will be published, the minutes of the last FOMC meeting and the Canada’s Core Retails Sales report.
Gold sharply fell on Monday by 2.70% to $1,678.9 – the lowest price level since October 24th; silver also sharply declined by 4.01% to $31.19. The Euro/USD exchange rate changed direction on Monday and slightly fell by 0.26% to reach 1.349. Other currencies also sharply depreciated against the US dollar. If the Australian dollar and Canadian dollar will continue to depreciate against the USD as they did in recent weeks, they may also pressure gold and silver to decline.
On Today’s Agenda
Minutes of the recent FOMC Meeting: Following the recent FOMC meeting, in which it was decided to keep the interest rates low and the FOMC revised down its economic outlook on the U.S economy, the minutes might bring some insight regarding the next steps of the FOMC and will there be an additional stimulus plan in the near future (see here FOMC meeting);
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.