During last week, gold and silver slightly declined as the recent developments in Greece, Spain and Italy that included riots against austerity measures may have pulled down not only bullion rates but also the Euro. By the end of the week, the release of Spain’s budget for 2013, which introduced, according to the Spanish government, austerity measures that are with accordance to the EU guidelines, may have contributed to the rally of the Euro and precious metals rates. There were several reports that were published during the previous week: the U.S GDP growth rate was revised down to 1.3%; U.S new home sales declined in August by 0.3%; U.S consumer confidence index rallied in September; U.S jobless claims declined by 26k to 359k. This mixed signal regarding the development of the U.S economy may have contributed to the little movement of bullion rates.
The FOMC decision to launch QE3 is likely to resurface this week as Bernanke is set speak on the Fed’s monetary policy; the minutes of the recent FOMC meeting will be published. These two items could affect gold and silver rates during the week. Here is a short outlook for October 1st to 5th.
The video report has an outlook of gold and silver for the main publications and events that may affect precious metals during October 1st to 5th. Some of these reports include:
Monday – Bernanke’s Speech: Following the recent decision of the FOMC the Chairman of the Federal Reserve will talk about the Fed’s policy. The speech’s title is: ““Five Questions about the Federal Reserve and Monetary Policy”;
Thursday – ECB Rate Decision: The last time the ECB decided to cut the rate was back in July when President of ECB, Mario Draghi announced the EU interest rate will be reduced by 0.25pp to 0.75%. Since many EU countries are still struggling, and since the FOMC decided on QE3, ECB might decide to make another rate cut in the near future by another 0.25pp. If ECB will cut the rate again, it may affect the Euro;
Thursday – Minutes of September’s FOMC Meeting: Following the recent FOMC meeting, in which it was decided to launch QE3, and to extend the Fed’s pledge of keeping the short term rates low until mid-2015, the bullion market reacted to this news – gold and silver prices hiked on the day of the announcement. The minutes of the recent FOMC meeting might add some additional perceptive and insight behind this decision and the future steps of the FOMC especially in anticipation of the upcoming FOMC meeting at the end of October;
Friday – U.S. Non-Farm Payroll Report: in the payroll report for August 2012, the labor market expanded by a lower than expected rate: the number of non-farm payroll employment rose by 96k; the U.S unemployment rate slipped to 8.1%; if the upcoming report will continue to show little growth of below 120 thousand (in additional jobs), this may raise the chances of the Fed introducing additional stimulus plan in the near future.
For further reading: