Gold and silver started off the week falling after they had risen on Friday. The decline in China’s manufacturing PMI index and the tumble of U.S manufacturing PMI to its lowest level since 2009 may have contributed to the decline in commodities rates. On today’s agenda: U.S Factory Orders report and Reserve Bank of Australia – Cash Rate Statement.
Gold declined on Monday by 0.41% to $1,597.7; silver also declined by the same rate of 0.41% to $27.5. During last month gold increased by 2.56% while silver edged down by 0.52%.
On Today’s Agenda
Reserve Bank of Australia – Cash Rate Statement: last month Australia’s Reserve Bank reduced the interest rate by 0.25 percent points to 3.5% – the lowest level since the end of 2009. This was the second rate change this year; if the RBA will decide to lower the rate again this news may affect the Aussie dollar that is strongly linked with commodities;
U.S Factory Orders: this report will offer some insight to the growth of the U.S economy and could affect the path of the USD;
Currencies / Bullion – July Update
The Euro/USD changed direction and fell on Monday by 0.71% to 1.2576. Alternatively, other exchange rates including the AUD depreciated. If the Euro/USD will change direction and trade up, it could pull up along with it bullion rates.
The recent fall in bullion might have been on account of the disapproving manufacturing PMI of China and U.S. Today there aren’t to many news items on the agenda so that I suspect bullion rates may shift from gains to losses and will land on the same side as the Euro. The upcoming U.S report regarding manufacturing orders and the Australian cash rate statement could affect the USD and Aussie dollar, respectively.
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