The prices of bullion rallied yesterday. In the U.S several reports came out yesterday: housing started spiked by 12.1% in December; jobless claims declined by 37k to reach 335k during last week; the Philly fed survey for January declined to an index of -5.8. This mixed signal regarding the progress of the U.S economy may have resulted in the mixed trend in the foreign exchange market. In China the fourth quarter GDP expanded by an annual pace of 7.9%, which is higher than in the previous quarter. This news might help rally commodities prices during the day. On today’s agenda: GB Retails Sales, Canadian Manufacturing Sales, and UoM Consumer Sentiment.
On Thursday, the price of gold rose by 0.45% to $1,690.8; Silver price also rose by 0.85% to $31.78. During January, gold increased by 0.96%; silver, by 5.34%.
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The ratio between the two precious metals slipped again on Thursday to 53.2. During the month the ratio fell by 4.2% as gold under-performed silver.
On Today’s Agenda
GB Retails Sales (December 2012): This report may affect the path of the British Pound currency. In the recent report regarding November 2012, retails sales remained unchanged;
Canadian Manufacturing Sales: This survey examines the changes (on a monthly basis) of Canada’s manufacturing sales. In the previous report the manufacturing sales declined by 1.4%; if this trend will continue, it could pull down the Canadian dollar;
UoM Consumer Sentiment (preliminary): University of Michigan will publish its preliminary consumer sentiment update; this survey could offer an insight to latest developments in U.S consumers’ sentiment; according to the previous report, the sentiment index fell to 74.5;
Prices of precious metals resumed their upward trend yesterday and they continue their rally today. The recent news of China’s GDP may positively influence commodities traders. On the other hand, the sharp rise in the U.S housing market may curb the rally of precious metals during the day. The upcoming reports including: UoM Consumer Sentiment, Canadian Manufacturing Sales and GB Retails Sales could affect USD, CAD and British Pound, respectively. This, in turn, could also affect precious metals rates.
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