The prices of precious metals changed direction a couple of times during the day but in the end they both slightly rose, despite the fall in other commodities prices and major “risk currencies” such as Euro or Aussie dollar. ECB kept its rate unchanged yesterday but it also lowered its projection for the Euro Area economic progress this year. ECB estimates the EU will contract by 0.5% during the year. This news may have contributed to the fall of the Euro. U.S jobless claims declined by 25k during last week and reached 370k. This news may have also helped appreciate the USD. Despite these news items bullion prices slightly rose yesterday. On today’s agenda: U.S. Non-Farm Payroll Report (update: U.S employment rose by 146k), ECB President Speaks, Australian Trade Balance, German Industrial Production, UoM Consumer Sentiment andChina’s CPI.
On Thursday, the price of gold rose by 0.5% to $1,700.8; Silver price also increased by 0.46% to $33.06. During the month, gold declined by 0.59%; silver, by 0.44%.
On Today’s Agenda
U.S. Non-Farm Payroll Report: in October, the labor market expanded by a higher pace than expected: the number of non-farm payroll employment increased by 171k; the U.S unemployment rate edged up to 7.9%; if the upcoming report will continue to show growth of above 120 thousand (in additional jobs), this may lower the odds of the Fed introducing additional stimulus by next week’s FOMC meeting (see here my last review on the U.S employment report);
Canada‘s Employment Report: In the recent employment report for October 2012, unemployment remained at 7.4%; the upcoming update might affect the Canadian dollar;
Australian Trade Balance: In the previous report, the seasonally adjusted balance of goods and services expanded its deficit to $1,456 million in September. The export of non-monetary gold rose by $253 million; if the gold exports will continue to rise in October, it might suggest a rise in demand for non-monetary gold (see here last report);
Great Britain Manufacturing Production: in the recent report for August the index edged up by 0.1% (M-2-M); this news may affect the British Pound;
German Industrial Production: This report will pertain to the developments in the industrial production of the German for October; in the previous report the German industrial production declined by 1.8% (M-O-M) during September.
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