Gold & Silver - Daily Outlook November 9

Gold and silver continued to rally and moderately inclined yesterday. The news from Greece and Italy continues to pour in but doesn't seem to have much of an effect on the commodities and forex markets (for the time being). Today, Australia employment report will be published, and Chairman of the Federal Ben Bernanke Speaks.

Gold moderately rose on Tuesday by 0.45% to $1,799.2 – the highest price level since September 21st; silver also inclined by 0.93% to $35.15. During November, gold increased by 4.3% and silver rose by 2.3%.

The ratio between gold and silver slightly slipped again on Tuesday, November 8th to 51.18. During November, gold rose by a higher rate than silver so that the ratio inclined by 1.9%. The chart below shows the developed of this ratio during November.

On Today's Agenda:

Chairman of the Fed –Bernanke Speaks: Following last week's FOMC meeting, the Chairman of the Federal Reserve will give a welcome in Federal Reserve Conference on Small Business and Entrepreneurship during an Economic Recovery, in Washington DC;

Australia Unemployment Rate: in the recent report regarding September 2011 the rate of unemployment slightly declined to 5.2%; the number of employed rose by 20,400 people; the number of unemployed slightly fell by 3,800 during September compared with August's figures. If this trend ill continue to could further affect the AUD;

Europe's Debt Crisis November 9th

Following the key confidence vote that was held yesterday in Italy, Berlusconi offered to resign from office. This announced was made in light of nation wide uprising against Berlusconi's government. Yesterday, the Italian government bonds yields grew to 6.59 – a weekly increase of 0.57 percent points. From the beginning of the month the Italian government bonds yields inclined by 1.07 percent points. The recent turn of events in Italy may pressure the Euro to depreciate against the USD and thus could also affect precious metals to fall.

Currencies / Gold & Silver– November

The Euro/USD slightly rose on Tuesday by 0.42% to reach 1.384. The incoming news from Europe regarding Greece and Italy may continue affecting the Euro and consequently may affect commodities.

Gold and Silver Outlook:

The rally in gold and silver in recent days was probably stem, in part, from the continuous speculation around the Greek debt crisis that helps keeping the uncertainty in the financial markets; on the other hand this situation also helped appreciate the USD against major currencies. Eventually I speculate that the effects from the forex market will reach the precious metals market and as the USD will further appreciate, it could curb the recent rally in gold and silver. Furthermore, the news ofHedge fundscurbing their bets on major commodities may also catch up as well and start adversary affecting gold and silver.

For further reading:

Gold and Silver Prices Weekly Outlook for November 7th – 11th

Gold and Silver Prices Monthly Outlook for November 2011

Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.

By: Lior Cohen, Energy Analyst forTrading NRG