The prices of gold and silver bounced back from their tumble on the last day of November. Will gold and silver continue to trade up? Currently, the prices of gold and silver are falling. The recent release of the U.S manufacturing PMI report showed the U.S manufacturing sectors have contracted during last month. Reserve Bank ofAustralia announced it will cut the cash rate by 0.25pp to 3% – the lowest rate since 2009. On today’s agenda: Spain’s unemployment Change, Bank of Canada’s Overnight Rate, ECONFIN Meeting, and Australia’s GDP third quarter update.
On Monday, the price of gold rose by 0.54% to $1,720.1; Silver price also bounced back by 1.5.2% to $33.71. During last month, gold declined by 0.48%; silver rose by 2.75%.
The ratio between the two precious metals slipped on Monday to 51.03. During last month the ratio fell by 3.14% as gold under-performed silver.
On Today’s Agenda
Reserve Bank of Australia – Cash Rate Statement: the overnight money market rate of Australia’s Reserve Bank was cut by 0.25pp to3% – its lowest rate since 2009. This was the sixth rate cut in the past 14 months. This rate reduction is plausibly due to the economic slowdown in Australia. This news could lower the Aussie dollar and consequently precious metals prices;
Spain’s unemployment Change: the rate of unemployment of the Spain rose again by 128k. This mean, the employment situation in Spain isn’t improving;
Bank of Canada’s Overnight Rate: The Bank of Canada will also decide on the Canadian overnight interest rate, which currently stands at 1%. The recent slowdown in Canada’s economy might prompt BOC to lower the rate in the forthcoming rate decision;
Australia‘s GDP Q3 2012: In the second quarter 2012, the GDP grew by 0.6% (seasonally adjusted) – a decline in growth compared to the previous quarter. The slowdown in China’s economy might also adversely affect the growth of Australia’s GDP. If the GDP growth rate will dwindle again it could affect the strength of Aussie dollar (see here last report).
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