Gold and silver shifted to red again yesterday after they had regained some value a day earlier. Other major commodities, such as crude oil, declined yesterday as well as AUD/USD and Euro/USD. The German Parliament approved the expansion of the European bailout fund that could ease the uncertainty in the financial markets over the stability of the Euro Area. Today, the U.S. Unemployment Claims report will be published, U.S. pending Home Sales and US GDP 2Q 2011 Estimate.
Gold and silver shifted to red and decreased yesterday: Gold shed on Wednesday 2.08% to its value to $1,618; silver sharply decreased by 4.45% to $30.13. During September, gold fell by 11.4% and silver decreased by 27.9%.
On Today’s Agenda:
German Parliament voted and approved on a bailout plan for Greece that includes raising the German guarantees for the EFSF fund from €123 billion to €211 billion;
U.S. Unemployment Claims: For the week of September 17th, initial claims fell by 9,000 to 423,000 claims;
Final US GDP 2Q 2011 Report: This report is the final estimate of the second quarter 2011 real GDP of US. In the preliminary estimates the 2Q2011 GDP growth rate was 1.0%, compared with 0.4% increase at 1Q2011 (for the second estimate of 2Q GDP).
U.S. Pending Home Sales: This report will be another indicator for the economic progress in the U.S. housing market in the U.S. and could affect traders not only in the stock market, but also in commodities markets;
Forex/ Gold & Silver– September Update
The EURO/USD along with other exchange rates changed direction and fell yesterday: the EURO/USD fell by 0.31% to reach 1.3543; the AUD/USD shed 1.34% to its value; the USD/CAD increased by 1.39%. The drop of major currencies against the USD might be related to the ongoing concerns over the affects of a Greek default.
Gold and Silver Outlook:
Gold and silver changed direction again and sharply fell yesterday. The recent trend in the financial markets seems that traders are pushing away from the safe haven investments including the US treasuries bills and precious metals. On the other hand the stock markets are also not performing well. This situation might suggest that the market is still in a level of high uncertainty especially in regards to the next steps of the policymakers in Europe and the economic progress of the US. Today’s US home report may have some effect on trading. In the meantime, gold and silver are likely to continue zigzagging and perhaps slightly rising in the next couple of days of the month.
For further reading:
Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.
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