Gold and silver slightly inclined yesterday after they had declined in recent days. The FOMC meeting may have helped pull up the financial markets as Bernanke left the door open on additional steps by the Fed to jump start the U.S economy. Today, the ECB rate decision will be made (update the rate was cut to 1.25%), the G20 meeting, the U.S. ISM Non-Manufacturing PMI report will be published and the U.S. Unemployment Claims report.
Gold inclined on Wednesday by 1.04% to $1,729.6; silver also sharply rose by 3.70% to $33.94. During the week (so far), gold decreased by 1.0% and silver by 3.8%. The ratio between gold and silver sharply fell on Wednesday, November 2nd to 50.96. During the week, silver declined by a larger rate than gold as the ratio rose by 2.9%. The chart below shows the developed of this ratio since August.
Bernanke Keeps Door Open on Stimulus Plan
The Federal Open Market Committee decided to keep the monetary policy in the same direction including keeping the interest rates low and the LT securities purchasing plan. But The Fed chairman, Ben Bernanke, kept the door open of an additional stimulus plan in the near future to help fight the high unemployment rate. If there will be such as plan it could also affect the gold and silver.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.