Following the sharp drop in prices of bullion on Monday and Tuesday, precious metals changes direction and bounced back yesterday. Their rally was accompanied with the rise of the Euro against the USD. In Europe, ECB didn’t change policy and Mario Draghi didn’t voice his concern around EU’s inflation. In the U.S, the ADP estimates 166k jobs were added in September – this is likely to be a benchmark for Friday’s non-farm payroll report. In yesterday’s speech, Bernanke avoided referring to the current government shutdown or the FOMC’s policy. Will gold and silver change direction again? On today’s agenda: U.S. Jobless Claims, U.S. ISM Non-Manufacturing PMI, EU retail Sales, GB Services PMI, and U.S Factory Orders.
On Wednesday, gold rallied by 2.69% to $1,320.5; Silver also pulled up by 3.29% to $21.85. During the week, gold decreased by 1.34%; silver inched up by 0.29%.
On Today’s Agenda
U.S. Jobless Claims Weekly Report: This weekly report will pertain to the changes in the initial jobless claims for the week ending on September 27th; in the previous report the jobless claims decreased by 5k to reach 305k;
GB Services PMI: In the previous report, this index increased to 60.5; this index may affect the British Pound’s direction;
EU Retail Sales:In the previous update, volume of retail trade rose by 0.1% during July ? lower rate than many had anticipated; this news may affect the Euro, which tends to be linked with precious metals prices;
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