Gold and silver sharply inclined yesterday along with other major commodities, U.S. stock markets while US dollar sharply weakened over major risk currencies such as CAD, EURO and AUD over the renewed optimism in the financial markets over the promise that Merkel and Sarkozy will manage to reach an agreement. I think it’s still premature to assume an agreement between these countries. Currently, gold and silver are traded slightly down. Today, Jean Claude Trichet will give a speech, and the Canadian Housing Starts report will be published.
Gold sharply inclined on Monday by 2.14% to $1,670.8; silver also sharply rose by 3.18% to $31.98. During October gold inclined by 3.0%, and silver by 6.3%.
On Today’s Agenda:
ECB Press Conference Trichet: Trichet, President of the European Central Bank, talked today in Brussels over the debt crisis and stated that the crisis is systemic and had moved from small countries to large ones. This speech didn’t help the market sentiment and may pull down the Euros/USD, and consequently also gold and silver;
Canadian Housing Starts: The upcoming report is regarding September 2011. In the last report regarding August, the seasonally adjusted housing starts declined compared with July’s rate. This report indicates not only the progress of the Canadian real estate market, but also of the Canadian economy; if the upcoming report will show growth, it may further strengthen the CAD.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.