The prices gold and silver continued to rally during last week, mainly following the announcement of the FOMC to commence QE3, in which it will start buying mortgage backed securities at a rate of $40 billion per month. This time, as oppose to QE1 and QE2, QE3 doesn’t have a time limit. This news is likely to keep pulling up precious metals and depreciating the US dollar in the near future. The German High Courts ruled in favor of the ESM and this news may have also pulled up not only the Euro but also commodities rates. The next move in Europe will be for Spain to request ECB to start its bond purchase program. As I have stated in the precious metals weekly outlook the main events of the week will revolve around ECB President’s speech, U.S housing starts report and Philly Fed survey. On today’s agenda: Minutes of RBA’s Monetary Policy Meeting.
Here is a short outlook for precious metals for Monday, September 17th:
Precious Metals –September Update
On Friday, Gold edged up by 0.03% to $1,772.7; Silver on the other hand slipped by 0.35% to $34.66. During last week, gold increased by 1.85%; silver, by 2.87%.
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Current Gold and Silver Rates as of September 17th
Gold (October 2012 delivery) is traded at $1,771.7 per t oz. a $1 or 0.06% decrease as of 09:19*.
Silver (October 2012 delivery) is at $34.585 per t oz – a $0.071 or 0.2% decrease as of 09:17*.
Here is a reminder of the top events and publications that are scheduled for today and tomorrow (all times GMT):
00:30 – Minutes of Australia’s Bank Monetary Policy Meeting
09:30 – Great Britain CPI
10:00 –German ZEW economic sentiment
Tentative – BOE Inflation Estimate
14:00 – U.S. TIC Long Term Purchases
00:45 – FOMC member Lacker’s Speech
Tentative – Bank of Japan – Rate Decision and Monetary Policy Statement
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