Gold and silver continue to zigzag with no clear trend as they moderately declined yesterday along with the rest of the markets including oil, American stock markets and Euro/USD. The Super committee’s failure to cut the U.S. budget didn’t help rally the markets. The revised down U.S. GDP and the decrease in U.S. demand for durable goods may have also adversely affected commodities traders. Today, the German Business Climate Survey will be published, Great Britain GDP for third quarter, and the U.S. Unemployment Claims report.
Gold shifted back to red and slightly declined on Wednesday by 0.21% to $1,698.80; silver also fell by 3.23%to $31.96. During the month, gold declined by 1.5% and silver by 7.0%.The Euro/USD changed direction again and also sharply fell on Wednesday by 1.21% to reach 1.3342 – the sharpest single day drop since November 9th.
Gold and Silver Outlook:
Gold and silver continue to seek direction as they did in recent days. The failure of the Super-committee may continue to echo in the financial markets and push down commodities. The European debt crisis is still far from over and Germany’s recent failure in bond sale may also raise the anxiety level in the markets and push traders towards safe haven investments such as U.S. treasury bonds and push away from commodities such as gold and silver.
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