Gold and silver ended the week with sharp rises after a week long of falls. Some consider that the rally of gold and silver is over and others consider there will be sharp gains during this week. All speculators look towards the EU summit as one of the catalysts that will push gold and silver prices. Today, ECB president Trichet will speak in an ECB Press Conference; the Euro Area Manufacturing PMI will be published.
Gold sharply inclined on Friday by 1.44% to $1,636.1; silver also sharply rose by 3.01% to $31.19.
On Today’s Agenda:
Euro Area Manufacturing PMI: In the last report regarding August, the Euro Zone Manufacturing PMI reached 48.4. This report will provide an indicator to the economic growth of the Euro zone economy and could influence the Euro/USD;
ECB Press Conference Trichet Speaks: Jean Claude Trichet, President of the European Central Bank, will probably refer to the recent EU Summit which was held yesterday (see below). This speech may affect not only exchange rates, but also major commodities;
USD / Gold & Silver– October
The Euro/USD inclined on Friday by 0.84% to reach 1.3896; other currencies also were traded up against the USD including CAD and AUD. If the “risk currencies” (AUD, Euro and CAD) will rise today, they might help push up gold and silver.
Gold and Silver Outlook:
Gold and silver sharply rose on Friday; gold and silver are currently traded up; as long as there is the ongoing debacle in the EU among the policymakers in dealing with the European debt crisis, there is probably good chance that this crisis will help keeping the gold and silver prices up. On the other hand, if the American GDP will show a sharp rise, it could curb the recent gains in the bullion markets.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.