On Friday the 30- and 10-year US bond yields gained +6.89% and +8.7% correspondingly. Investors were ready to earn big money by investing in risky assets: stocks (especially European ones) and commodities. As a result, gold and silver reached new highs. European stock indexes showed more strength then American ones, thus increasing the demand for the common Euro currency.
Later on Friday EURUSD gained +2.08% while the US index declined by 1.41%.The Japanese Yen updated the local high versus the US dollar.
Thursday’s open interest for gold futures and options changed by -0.17% and +0.59% correspondingly. For silver futures and options the change was +3.94% and +1.36% correspondingly.
СМЕ Group’s silver reserves declined by 0.12%. ETF reserves shrunk by 5153 ounces down to 71.748M ounces. SPDR Gold Trust’s gold reserves shrunk by 0.61 tons down to 1243.55 tons.
Silver keeps being almost twice (1.79 times) as volatile as gold. Yesterday both gold and silver lost their trading volume. Both of them showed positive correlation with stocks.
US stocks rallied on positive economic data. The GDP report came out better than expected. Oil futures gained 4%. In the morning Asian markets gained 1.14% - 1.79%.
Today the markets will still be focused on news from Europe. However they start shifting their attention to the situation in the USA and China. On Nov 1st-2nd the Fed Res is to hold another meeting. The People’s Bank of China is expected to add liquidity (=inflation) at the end of the year to support the Chinese economic growth.
Forecast. According to the Department of Commodity Trading, ,today gold may hit $1760/oz and $1772/oz. Gold has been growing in price for the 5th consecutive day, which means investors may start taking profit later on the day, thus initiating a retracement. Silver may try consolidating above the level 36 and 36.5. However, after the 5 consecutive days of growth a retracement is highly probable.
