Gold and Silver Outlook for November 13
Submitted by Trading NRG as part of our contributors program.
The prices gold and silver remained virtually unchanged on the first day of the week as the Euro, Yen and other currencies remained unchanged yesterday. Yesterday’s Euro-group meeting was concluded with little headway as the EU ministers of finance approved Greece’s budget but postponed its decision of approving the next loan tranche to next week. On today’s agenda: European Council Meeting, Great Britain CPI, German ZEW economic sentiment, BOE Inflation Estimate and U.S. Federal Budget Balance.
On Monday, Gold remained unchanged at $1,730.9; Silver slipped by 0.25% to $32.52. During the month, gold increased by 0.69%; silver, by 0.63%.
On Today’s Agenda
European Council Meeting: In the European Council Meeting the EU ministers of finance will meet and talk about the recent monetary developments in Europe; this could include Greece’s eligibility to receive the next bailout package;
U.S. Federal Budget Balance: this report indicates the government debt growth and thus may affect the U.S dollar. In the previous report referring to September, the deficit declined by $75 billion to a deficit of $1,089 billion for the fiscal year of 2012; this is a decrease of 16% compared to the last fiscal year;
Great Britain Consumer Price Index: some expect the inflation rate had further dwindled; in the recent report regarding September the annual CPI decreased from 2.5% to 2.2%; this news might affect the British pound, which is also linked with commodities prices;
Currencies / Bullion Market – November Update
The Euro/ USD remained nearly unchanged on Monday at 1.271. Conversely, some currencies such as Aussie dollar appreciated yesterday against the USD by 0.39%. This mixed trend might have contributed to different directions gold and silver took yesterday. As seen in the chart below, the correlation among gold silver, Euro and Aussie remains mid-strong and robust: during October and November, the linear correlation between gold and Euro /USD reached 0.53 (daily percent changes); the linear correlation between the silver and Aussie /USD was 0.45 (daily percent changes). Thus, if the Euro and other risk currencies will decline today against the USD, they are likely to pull down gold and silver.
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