The prices gold and silver declined yesterday and thus since September 14th, following the announcement of the FOMC to launch QE3, the price of silver fell by 2.07% and gold by 1.08%. The same goes for the Euro and other “risk currencies” that have also declined in the past couple of weeks. The recent developments in Spain and Greece may have contributed to the weak Euro. This news may have helped rally some commodities prices. The U.S new home sales edged down in August by 0.3%. On today’s agenda: U.S Core Durable Goods, U.S GDP second quarter (Update: U.S GDP rose by only 1.3% in Q2), U.S. Pending Home Sales, Great Britain Current Account, China’s revised Manufacturing PMI, Italian 10 Year Bond Auction, Euro Area Monetary Development and U.S. Jobless Claims.
On Wednesday, Gold declined by 0.72% to $1,753.6; Silver also fell by 0.02% to $33.94. During September, gold rose by 4.67%; silver, by 7.97%.
The ratio between the two precious metals also declined on Wednesday to 51.67. During September, the ratio declined by 3.74% as gold slightly under-performed silver.
On Today’s Agenda
U.S Core Durable Goods: This report may indirectly show the changes in U.S. demand for commodities such as crude oil. As of July 2012, new orders of manufactured durable goods rose by $9.4 billion to $230.7 billion; if this report will continue to be positive then it could pull up not only the USD but also commodities;
U.S GDP 2Q 2012: In the recent estimate the U.S GDP in the second quarter grew by 1.7%; in the 1Q2012 the GDP growth rate was 1.9%. This shows a decrease in the growth rate for the US’s GDP. If there will be a sharp shift in this estimate it could also affect not only the US dollar but also commodities.
U.S. Jobless Claims Weekly Report: in the recent report the jobless claims slipped by 3k to 382,000; this upcoming weekly report may affect the USD and consequently the rates of commodities;
U.S. Pending Home Sales: in the recent report the pending home sales index rose by 2.4% (M-over-M). These data are another indicator for the changes in America’s real estate market; based on last week’s results on housing starts the pending sales may continue to rise. In such a case US dollar may rally;
China’s revised Manufacturing PMI: according to last week’s HSBC Manufacturing PMI flash report for September 2012 the Manufacturing PMI edged up to 47.8, which means the manufacturing conditions are still contracting; if this negative index will continue, this may adversely affect commodities, unless China will act to stimulate its economy.
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