Gold and silver changed direction again and slightly slipped on the last day of last week, after the U.S. non-farm employment report showed an increase of 103k in employment during September. Currently, gold and silver are traded up. The speculation around the European debt crisis continues to be high with an update of the recent news on this issue herein. Today, the French and Italian industrial production report will be published, and Japan’s current account.
U.S Employment Grew by 103k in September
The U.S. employment inclined in September by 103,000 according to the last U.S. labour report, which was published on Friday, October 7th by the Bureau of labour Statistics. The rate of unemployment remained unchanged at 9.1%.
Historically, as the U.S employments rise gold tend to decrease; this correlation was mostly due to the effect this news had on the USD; the recent news seem to have worked again in the same direction as indicated in the updated table below:
USD/ Gold & Silver– October
The EURO/USD slightly slipped on Friday by 0.44% to reach 1.3378; the CAD also followed and depreciated against the US Dollar by 0.24%. If major risky currencies (AUD and CAD) will change direction and start to appreciate against the USD, they may help gold and silver prices to incline.
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Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.