Following the decline of precious metals during most of the week, they have changed direction as both gold and silver pulled up on Thursday along with the rest of the market including oil prices, the Euro and major stock markets. This rally came despite the lower than anticipated growth in GDP for the U.S during the second quarter 2012. The recent news from Spain that the country is ready to pass new austerity plans may have contributed to the rally of the Euro. U.S jobless claims declined by 26k; this news may have also helped rally the commodities and stock markets. Currently, gold is falling. On today’s agenda: German Retail Sales, KOF Economic Barometer, Canada’s GDP by Industry and UoM Consumer Sentiment.
On Thursday, Gold changed direction and hiked by 1.53% to $1,780.5; Silver also rose by 2.14% to $34.67. During September, gold increased by 5.5%; silver, by 10.25%.
The ratio between the two precious metals declined on Thursday to 51.36. During September, the ratio declined by 4.31% as gold slightly under-performed silver.
On Today’s Agenda
German Retail Sales: In August, retail sales declined by 0.9%; if this report will remain negative then it might weaken the Euro;
KOF Economic Barometer: this report provides an outlook of the Swiss economy in the months to come. In the previous press release, the report predicted that the Swiss Economy is headed towards an expansion in 2012;
Canada’s GDP by Industry: the report will refer to the shifts in major industrial sectors for July 2012. In the previous report regarding June 2012, the real gross domestic product edged up by 0.2%. This report may affect the strength of the Canadian dollar currency which is strongly correlated with commodities;
UoM Consumer Sentiment (revised): University of Michigan will issue its revised consumer sentiment survey; this survey could offer another insight to recent developments in U.S consumers sentiment about the economy; last time the sentiment index increased to 74.3;
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